Buyers kept the range $6760-6820.
Fixing above $6950, buyers can count on the test of $ 7300-7400.
The critical point for buyers is the mark $6600.
Yesterday at Bitcoin market sellers tested the range $6860-6820. During the day, Bitcoin price sharply fell by almost 8% and is currently trading in a narrow consolidation. Sellers were unable to fix below this range, setting only a local low at the mark $6750. During 3 four-hour candles sellers led an aggressive attack, but in the price range $6760-6820 met resistance in the form of buyers’ limit orders. At the moment, sellers continue to be active, and buyers protect themselves without sharp counter-attacks. Trading volumes in the consolidation have declined. So far, buyers manage to prevent sellers from retesting the price range $6760-6820.
Considering the situation on the hourly timeframe, we see that after the absorbing candle, buyers formed a local consolidation in the range $6840-6950 and carefully guarded the lower limit of this consolidation:
If sellers do not manage to continue their fall in Bitcoin market today, buyers will still test $7100 with a possible growth continuation to $7300-7400. However, it is possible to talk about the local trend of Bitcoin price growth after fixing above $6950.
At the moment, the situation is almost equal, and it can be seen also on the density of orders on the exchanges.
Yesterday’s daily candle closed at $6875 with a likely prospect of continuing to fall to $6300. This fall is possible provided the price fixing below $6600 today. Although, if you look at the 12-hour timeframe, we see that the activity of sellers has fallen significantly during the test of $6760-6820. It still slightly increases the chances of buyers for a new attempt of a local growth trend:
Pay attention that the close to completing 12-hour candle was trading at practially no volumes. It indicates a significant reduction of pressure from sellers now.
If you look at the situation with the marginal positions of market participants, it becomes clear that yesterday’s fall was well helped by stop orders of buyers:
As we see buyers are closing their positions and sellers on the contrary increasing.
In principle, the situation is developing in our main scenario, but we do not like the weak price exit from the wedge. Therefore, according to the wave analysis of Bitcoin price, we assume another attempt of buyers to break $7300-7400 and to test $7600-7700:
Nevertheless, as long as buyers are not initially above $6950, sellers have every chance to test $6600 today and try to fix below that mark. Let’s see if market participants can exit of current consolidation today.
Image Courtesy: TradingView