Today, Bitcoin price grew by 8%.
Buyers have tested the upper trend line of the falling channel.
The maximum target of Bitcoin price growth continuation is $9200.
Today buyers positively spent time in Bitcoin market, approaching the upper trend line of the black channel. Also they have tested the price mark $8730. After a 6-day consolidation, buyers were able to break through $8240 and made it with a big candle at large volumes. Buyers’ confidence allows Bitcoin price to go beyond the black channel. But a solid argument for the full advantage of buyers will be if they fix above the price range $9070-9350. In previous analyzes, we paid attention to this price range, because in July 2019, sellers took a lot of effort to fix below it, thereby, testing $6477 in the end.
Looking more closely at the growth on Bitcoin market today, there are two important local targets:
The first is, of course, the mark $8240, which was the upper limit of 6-day consolidation. The second is the price mark $8470, at which buyers stopped for 8 hours and were able to keep it during the counter-attack of sellers. During the attack on these price marks, buyers needed increased volumes to continue their growth. Therefore, the local signal of the reversal of the current trend of growth will be if sellers fix below the mark $8470.
The probability of a sharp continuation of Bitcoin price growth is small, in our opinion. We will likely to have a new period of consolidation. However, there is an interesting fact, if you look at the market of futures for Bitcoin, there the price has already gone beyond the falling channel:
In any case, buying Bitcoin right now is quite risky and it is worth verifying the intentions of buyers.
The mood of buyers has certainly improved today. We may see it at the chart of marginal positions:
However, sellers were more pleased with the growth of Bitcoin price and with great desire began to open short positions:
If you pay attention to the size of the candle on the chart of margin positions of sellers, then such a growth and confidence are not often met.
According to the wave analysis on Bitcoin market, today buyers were able to correct the fall wave (Y) by 61.8%, in general:
A serious impediment to continued growth which requires more effort than we saw today.
If the growth wave of 3 January we divide into 3 smaller waves, then the prospect of wave(c) development ends at the mark $9200:
Let’s see on the 15th how serious the game has been for buyers and what are the chances to go beyond the global black channel.
Image Courtesy: TradingView
The post Bitcoin Price and Technical Market Analysis January 14th, 2020 appeared first on BitcoinNews.com.