- Bitcoin price fell but sellers must control $9900.
Sellers managed to test the first target $9350. After fixing below $9050, the next target for sellers is $8700. To break the attack, sellers must get control over the price mark $9900.
In recent days, Bitcoin sellers have been able to turn things around to their advantage. By breaking the global trend line of buyers on the daily timeframe and fixing above $10,100, sellers easily tested the local mark $9350 we wrote about in our previous analysis. After a sharp Bitcoin price fall by 8%, for the second day, buyers behave as carefully as possible. The main achievement of buyers yesterday is closing of daily candle above $9050-9350.
However, pay attention to volumes. If we compare two daily candles on 19 and 20 February, we see that the selling volumes are almost 2 times higher than the buying volumes. Given that sellers have been able to touch the mark $9350, the rebound looks rather weak. Therefore, if buyers continue to build their counterattack as lazily, then sellers will have no choice but again to test $9050-9350 for a breakdown.
At the 4-hour timeframe, we see a clear consolidation which passes at reduced volumes:
Buyers are trying to turn that consolidation into a growth trend. If they manage to keep $9600 – their lazy trend will continue. Though, for now, it looks like a correction after the aggressive attack of buyers in Bitcoin market.
Therefore, given the current situation, Bitcoin price fall continuation remains our main scenario. The next target after fixing below $9050-9350 is the price mark $8700. On a daily timeframe, it is clear that at this price, the consolidation has accumulated volumes, which helped buyers to continue their growth to $10,500.
Buyers have improved their mood today and it is confirmed by the chart of their marginal positions:
Although not significant, but positions on the market increased during the price growth attempt in the Bitcoin market. Sellers already for the third day behave quite passively on the chart of marginal positions:
As we can see, positions are significantly decreasing. According to the wave analysis, sellers managed to correct the previous wave of growth by 23.6%. The next target is the level of Fibonacci 38.2%.
Locally, if buyers manage to fix above $9900, then the aggressive attack of sellers will be broken. And buyers will have another chance to test $10,300-10,500. Let’s see how Bitcoin price will move this weekend.
Image Courtesy: TradingView
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