Sellers have reached the new critical range $7500-7800.
The main local scenario is the price correction up to $8700.
Having fixed below $7500, the next target of sellers is $5500-5900.
The new Bitcoin trading week began with a continuation of panic and the price lowering below $8000. During the previous weekend, sellers were able to deny all buyers’ achievements which they had generated during the previous week. Forming a local growth trend from 2 March, buyers did not expect such aggressive sales. Of course, we wrote about the critical range $9050-9350, from which we expected Bitcoin price reversal, but did not anticipate such aggression. As a result, the previous weekly candle opened at $8556 and closed at $8055. The volumes level over the past two days is incredible.
Today, sellers have already managed to reach the important price range $7500-7800, from which buyers on 6 January continued the price growth in Bitcoin market with the final target $10,400. This range is a good contender for the role of local bottom, from which buyers can try to arrange correction of this crazy fall. With a successful correction attempt, the final target for us is $8700. However, the final target will depend on the nature of growth and volumes.
At the 4-hour timeframe, we see that the last candle on high volumes could not close at the local low:
Buyers managed to close this candle with a large pin, which is the first signal of a likely Bitcoin price reversal. Another signal will be another unsuccessful attempt of sellers to update the local low, which buyers must confidently suppress.
After the sharp closing of the marginal positions of buyers yesterday, within one 4-hour candle, now buyers are trying to repair the situation:
So far, it looks rather sluggish.
Sellers do not stop increasing their marginal positions during the fall:
The aggressive increase of sellers’ margins started from the price $8700. Today, having tested $7730, sellers are also actively increasing their positions. And now, the price is above $8000, sellers are in an awkward situation, but the positions are not closed.
According to the wave analysis on Bitcoin market, the fall wave from 7 March is equal to the fall wave from 24 February. Sellers managed to correct the previous wave of growth of December 2019 by 61.8%:
Let’s see how today’s candle closes and let’s estimate the probability of Bitcoin price correction tomorrow with a target $8700.
Image Courtesy: TradingView