Yesterday’s daily candle closed below the previous one at the price $7913.
During the breakthrough of the mark $8100, sellers become active, lowering the price by 3.5%.
If today buyers manage to keep the local trend line – the final target of growth is $8600.
Yesterday’s Bitcoin trading day ended with the closing of the daily candle at $7913. During the day, buyers tried to build a local growth trend, but to close the daily candle at a higher Bitcoin price than the previous one they can’t. Yesterday’s buyers attack was unsuccessful, as it turned out that there were enough sellers on the market who would not allow easy Bitcoin price growth. Today, sellers are trying to retest the mark $7680. If they fail to fix below, there is a good chance of starting a fall impulse correction.
Trading volumes are decreasing every day, indicating a local extinction of sellers’ aggression and the start of price growth in Bitcoin market with the final target $8600.
At the 4-hour timeframe, we see that buyers at relatively low volumes tried to raise the price and during breakthrough of $8100 got a knockout from sellers:
As a result, during one 4-hour candle, sellers easily lowered the price by 3.5%, denying all previous buyers’ growth. Buyers failed to respond with the next candle with the same result. And now the initiative is in the hands of sellers. So far, the bottom trend line of the local growth channel is under the control of buyers. That’s why it is early to talk about ending of the growth attempt. The critical point of Bitcoin price is at $7800.
If buyers successfully keep $7800 it will give them a chance to test $8260. Otherwise, sellers will again check buyers for strength and try to update the local low.
Marginal positions of buyers do not inspire hopes for growth and have decreased yesterday:
Sellers yesterday also reduced their margins, but today they are actively trying to increase them:
According to the wave analysis in Bitcoin market, buyers try to keep the price above the level of Fibonacci 61.8%:
Bitcoin price near this level is beginning to slow down. We expect that without additional increased volumes, sellers will not be able to pass this level without correction. So, keeping the range $7500-7800 and starting the local growth trend is our main scenario right now. The main question is how this correction will look like and how exhausted and scared buyers are.
Image Courtesy: TradingView