Buyers managed to organize a local price reversal, testing the range $9050-9350.
Sellers will complete buyers initiative if fix below $8700.
Sellers’ main target is $7330, with a temporary stop at $8550.
After yesterday’s passive trading day on Bitcoin market, which closed at the mark $8788, buyers decided to catch the moment. Today, buyers have managed to fix above the base of the reversal figure, which passed at $8900 and test the main critical range $9050-9350. Remind you, that during Bitcoin price fall from 24 February, sellers easily passed this range, not allowing buyers to organize a small rebound.
Therefore, the main fact of continuing the fall will be if sellers keep the range $9050-9350. The daily chart shows that it took 6 days for buyers to calm the panic trading on Bitcoin market and local price reversal. Today’s growth looks pretty confident. In the next few days we will see how far buyers will go within the liquid zone $9050-9350.
At the 4-hour timeframe we can assume the continuation of Bitcoin price growth in the blue channel, the local high of which reaches $9200. Thus, the completion of the local trend of buyers’ growth will be after sellers fix below $8700. As we can see in the history, sellers failed to fix below this mark yesterday, which raised its importance in forecasting the scenario.
Marginal positions of buyers remain unchanged:
Buyers are not trying to increase their positions yet and expect a solid bottom.
Sellers have decreased their margins today. Though, Bitcoin price has just reached a critical point from which it can continue its sharp fall:
Perhaps, the sharp price growth on Bitcoin market has frightened some sellers, especially those who came yesterday at local lows. Let’s see later this week whether sellers’ mood will change when the price will be at the range $9050-9350.
According to the wave analysis, buyers managed to correct the previous wave of fall from 13 February by almost 38.2%:
The pattern of growth does not resemble the beginning of a new impulse of growth yet. So, until buyers are fixed above $9350, our main scenario is the continuation of Bitcoin price fall with the first target $8550 and the final $7330.
Let’s see how Bitcoin trading week will end and tomorrow we will analyze what we can expect from Bitcoin price on the weekend.
Image Courtesy: TradingView