Buyers finally managed to start their game.
Yesterday, on relatively large volumes, buyers broke through the upper trend line of sellers, which kept the price from 24 December. Now, buyers are trying to fix themselves over the price zone of $3,830-3,930. At the moment, finally, we can imagine and draw a new channel of price movement — the growth channel:
As you can see, the price is located near the middle line of the channel. Last time, on 19 January, buyers failed to break through this line and the fall continued:
Even so, volumes are beginning to appear now and if buyers will keep themselves above the price zone of $3,830-3,930, then the global target of this growth in the price of $4,740:
However, on the way to this target, buyers will have another problem – it is the price range of $4,120-4,175. First of all, in this price zone, there is good liquidity which we see in horizontal volumes. If we analyze the placement of volumes on the chart, then we will see that after this price zone, sellers will have the opportunity to fight for their targets from $6,200. The range from $4,175 to $6,200 is practically without liquidity:
Therefore, we believe that the main test of buyers’ durability is still ahead. However, increasing volumes and large green candles are already a success.
Margin buyers’ positions began to decrease sharply. Buyers either fix profits or get out of bad positions in which they were from 24 December, when BTC rose from S3,830 to 4,180:
However, pay attention that the price at the same time is in a small consolidation and does not respond to closing the positions of buyers.
Sellers also close their positions. Most sellers who came in the position from 20 December will feel good, while buyers did not break the price zone of $3,830-3,930.
According to the wave analysis, the price of S4,125 is also a critical point. If a whole growth, which began on 17 December, is to be considered as a correction after the fall, then at a price of S4,125, this correction may end completely:
Buyers have already gone past the first critical point in the price of $3,867.
If you look at the chart locally, then the current growth corrected the fall from 7 January by 61.8%. At the price of $4,175, sellers have the last chance to stop the buyer’s initiative.
As you can see, all the facts indicate us that $4,125-4,175 is an important critical point which defines the scenario on the medium-term price movement. We expect to break through this price zone upwards but first, we want to see the confirmation from buyers about fixing over the price zone $3,830-3,930. Finally, some movement began and people are waking up. Maybe this is due to the coming spring? In any case, the price has been consolidating for a long time and it is time for the trend movement.
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About the Author: Peter Oleshchuk is a trader and technical analyst.
He has spent two years studying and analyzing the crypto market.
Image Courtesy: Bitcoin News
The post BitcoinNews.com Bitcoin Market Analysis 19th February 2019 appeared first on BitcoinNews.com.