• Having reached the range $9050-9350, buyers have gone into consolidation.
  • The optimistic scenario for buyers is the test of $9422.
  • The main scenario remains the continuation of the fall in the range $7330-7600.

Yesterday’s trading day on Bitcoin market ended with an inconspicuous daily candle, which closed in the range $9050-9350. As we can see in the chart, the trading volumes are as small and passive as the daily candle itself. Bitcoin price range was less than 1.5%. Sellers are still allowing buyers to stay within the yellow range without taking harsh measures to reverse the local trend. If we look at the 4-hour timeframe, we see that within 2 days the price is moving in a narrow consolidation within $9060-9180:

Bitcoin Price and Technical Market Analysis March 7th, 2020

Since we do not see big volumes in the consolidation and the wave of growth from 4 March  seems quite confident, the probability of breaking the consolidation up is higher than down. We also noticed that during the test of the upper limit of consolidation in Bitcoin market, other coins successfully update the local high, wishing to arrange a deeper correction. Therefore, the probability of closing the trading week at $9350 is quite high.

However, Bitcoin price exit out of current consolidation will not be a big deal for buyers as long as they keep $9000:

Bitcoin Price and Technical Market Analysis March 7th, 2020

As we wrote in the previous analysis, the local growth trend occurs within the blue wedge. While trading range is in the wedge, we will expect another test of the upper trend line, after which a new falling impulse with a final target $7330-7600 is likely to begin.

Marginal positions of buyers remain unchanged and try to continue to passively grow:

Bitcoin Price and Technical Market Analysis March 7th, 2020

Sellers are increasing their marginal positions more actively, expecting a reversal from the range $9050-9350:

Bitcoin Price and Technical Market Analysis March 7th, 2020

After successfully formed the first wave of fall (W) in Bitcoin market, which consisted of 3 smaller waves, buyers complete the formation of wave (X), which at the moment corrected the wave (W) by 38.2%:

Bitcoin Price and Technical Market Analysis March 7th, 2020

If buyers do not succeed in fixing above this level of Fibonacci, the new falling impulse will be no less strong than the previous one. And the final target is in the range $7330-7600. A more positive scenario for buyers involves Bitcoin price exit from $9050-9350 and the test of $9422. Nevertheless, our main scenario remains the same.

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