Buyers were unable to close the daily candle above $6830.
Fixing below $6550, sellers will continue their attack to $6350 and $6250.
An alternative scenario is to continue growing to $7550 (after fixing above $6830).
Bitcoin market is still in consolidation at local highs. For yesterday and today we have not results in identifying the further direction of Bitcoin price movement. After yesterday’s sharp attempt to grow and update the high at $6968, buyers’ aggression significantly decreased. Defending the critical level $6830, an hour later sellers again explained buyers that they were not ready to give up positions without a fight. The hourly timeframe shows buyers trying to sharply regain control of the level $6830, but this time sellers easily repelled this attack:
As we can see in the chart, sellers managed to lower the price in Bitcoin market even lower than the daily candle opened. Since the incident, buyers have continued their growth attempt. However, compared to previous attacks, it becomes clear that buyers have weakened or are exploring the situation with low volume. As a result, buyers failed to go beyond $6800, and now the initiative has been taken over by sellers. Sellers are lowering Bitcoin price passively without infusing volumes by continuing Bitcoin price movement in consolidation.
If you look at how the last 4-hour candle has closed, you can conclude that it is easier to move down in this price range. With the help of one 4-hour candle, sellers were able to cover three previous candles of buyers.
On the daily timeframe, we see that daily candle closed below $6830, creating a false breakdown:
The chart shows that the price correction to the mark $6360 is quite acceptable to continue the price growth in Bitcoin market. According to our main scenario, we expect a price lowering to the level $6250 with a possible extension to $5350. The final target of the fall will be clear in the nature of the fall.
According to the wave analysis, globally the situation has not changed and we expect a new wave of fall. On an hourly time frame, buyers were able to correct a sharp fall from $6968 by 61.8%:
Lowering Bitcoin price below $6550, sellers will continue their sales more aggressively with the first stop at $6350. Alternative scenario – the growth to $7550, is possible after buyers fixing above $6830. Let’s see tomorrow whether sellers can start the fall and which it will be, corrective or impulsive.
Image Courtesy: TradingView