Sellers have updated the local low and are moving to the mark $7150.
While sellers control $7500 probability of the fall continuation is quite high.
The final target of the fall is $5500-5900.
Yesterday’s candle on Bitcoin market closed with a false breakdown of the previous local low. Buyers were looking for short-term growth with the first target $8200. However, buyers were unable to close the daily candle above an important level $7800. Keeping this mark, sellers have proven their dominance in the market. Today, they have shattered buyers’ dreams of slowing down the fall by updating the low. The price mark $7500 was also unbearable and sellers were able to go deep into consolidation from 23 November to 4 January. Trading volumes continue to increase and until buyers have not the strength to even stop the fall of Bitcoin prices.
At the 4-hour timeframe, we see a failed attempt of buyers to fix above $8000:
During this attempt, buyers used low volumes and, in fact, touching $8000 gave the initiative to buyers. While sellers are keeping the mark $7500 on Bitcoin market, the likelihood of the fall continuation is high. However, without correction to pass the current range of consolidation will be difficult. So at the moment, we expect a further fall to $7150 and in this mark we will follow the behavior of buyers.
Buyers’ margins continue to decrease, but it doesn’t look so panic yet:
Sellers continue to lower their marginal positions, capturing profits and waiting for Bitcoin price fall:
According to the wave analysis, the current fall consists of 3 waves:
The current fall wave (C) in Bitcoin market at the mark $7150 will be equal to the previous wave (a). In addition, at this mark, sellers correct the previous wave of growth of December 2019 by 78.2%.
Looking at the weekly timeframe, there is little positive for buyers. This weekly candle completely denied the previous 5-week Bitcoin price growth. If buyers are unable to at least arrange a pin at the end of the week, sellers’ target will be $5500-5900. Therefore, we are expecting the target $7150 and are following the buyers’ response and the mark $7500.
Image Courtesy: TradingView