Bitcoin price trading week began with calm consolidation in the price zone $8580-8660.
The daily candle closes not in favor of sellers, which indicates continuation of consolidation.
If buyers do not keep $8600, the next seller target is at the mark $8030.
The new trading week in Bitcoin market began without much intrigue and sharp movements. After yesterday’s sharp fall of Bitcoin price from $9100 to $8600, buyers are trying to slow down the fall and go beyond the black global falling channel again. As a result, consolidation has just formed on the upper trend line of the black channel, which now looks like a stop before the fall continuation.
At the 4-hour timeframe, it is noticeable that sellers had tried twice to continue the fall. But buyers had withstood these attacks without continuing the counterattack. Every subsequent attempt by sellers to break through the local price level $8600 is on lower volumes. It gives buyers a chance to correct and check sellers for strength at the local mark $8900.
At the daily timeframe, we see today’s candle not in the best light to aggressively continue its fall in Bitcoin market:
This situation inspires the view that the most likely scenario this week is the continuation of consolidation in the range $8600-9100. Despite the sharp fall of sellers yesterday, there are still enough buyers in the market who believe in continued growth. And until sellers can meet their demand at local highs, a continuation of the fall is unlikely.
On the chart of marginal positions, the situation looks like the margins will continue to close:
However, there is good news in this as well. If you look at the level of marginal positions at the moment, it becomes clear that their main number is already closed. In this case, during the continuation of Bitcoin price fall, a sharp fall due to the stop orders of buyers will not be achieved.
Sellers also stopped active actions on the margins chart:
In fact, the active actions lasted one day.
According to the wave analysis, the current consolidation in Bitcoin market is more like a correction before continuation of the formation of the fall wave:
Since the correction is rather insignificant, it is likely that the next target will be $8030.
Let’s see how today’s candle closes and whether sellers can make a deeper correction of Bitcoin price, thus weakening the future fall wave.
Image Courtesy: TradingView
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