A false breakdown of the local range $9060-9170 provoked sellers into aggressive actions.
After lowering the price by 10% in 2 days, sellers stopped at the mark $8200.
If sellers can keep $8500, they will be able to continue falling trend to $7900.
The weekend was quite dramatic for buyers on Bitcoin market. The last thing buyers remember is Bitcoin price consolidation in the range $9060-9170. It looked like buyers had enough strength to test $9330 and then take the initiative to sellers. However, on Saturday, after a false breakdown of the local range $9060-9170, sellers did not give buyers a chance to quietly leave their positions. Sellers did not allow other players to normally enter for Bitcoin price lowering. For 2 days we have not seen any correction in Bitcoin market. Buyers were clearly not expecting this kind of pressure.
In the whole, for 2 days Bitcoin price fell by 10%. The fall is on a tremendously increased volumes, especially today:
At the 4-hour timeframe, we see that the last two candles especially have anomalous volumes. The volumes of the last hour candle is disproportionate to its size. Given that sellers managed to reach the first target $8150, which we wrote about in the previous analysis, the probability of correction is quite high.
An important question arises before buyers. Will they be able to fix above $8500 and the orange trend line?
If buyers do not have the strength to do so in the next days – the fall in Bitcoin market will continue at about the same strength.
Margins of buyers have sharply decreased only at the previous 4-hour candle, when sellers managed to pass the critical local level $8700:
The sharp closing of the marginal positions accelerated the fall of Bitcoin price.
Sellers who increased their marginal positions with market orders also added speed to the fall:
The last two 4-hour candles show the aggressiveness of sellers. Nevertheless, when buyers organize correction, sellers who have increased their positions during the fall will now feel discomfort.
According to the wave analysis on Bitcoin market, we see that the correction of the previous fall wave has ended and now a new impulse has started:
The wave (Y) has already passed the first level of Fibonacci 0.382 and is ready for the next one, which is at the mark $8200. Looking at the chart more globally, the fall wave, which continues from February 2020, corrected the previous wave of growth by 50%. So, let’s see if buyers are ready to turn such a strong falling trend. And on Monday we forecast what should we expect from Bitcoin price next week.
Image Courtesy: TradingView