Bitcoin price decrease by 1% did not affect the global market dominance of buyers.
Given the nature of the price movement at the 4-hour timeframe, the test of $9050 is quite possible.
The next target is $10,500.
Yesterday’s trading day on Bitcoin market ended with a price decrease by 1%. Sellers managed to close the daily candle below the local mark $9270 and set a new local low $9112. For the last three days, sellers have been trying to take the initiative on their own with almost equal volumes. But they the did not get a main achievement – the fixation of Bitcoin price below $9050.
Taking into account the nature of the price growth since 26 January and comparing it with the fall attempt now, we conclude that buyers have enough strength to keep under control the critical price range $9050-9350. Therefore, the continuation of Bitcoin price growth in the market with the first target $10,500 remains our main scenario.
The daily timeframe also shows that sellers practically managed to test the lower trend line of the blue growth channel. Due to an obstacle in the form of the range $9050-9350, buyers were unable to test the upper trend line of the blue channel during the attack on 26 January. So, if the range $9050-9350 successfully kept – this test will be during the next growth.
If you analyze the situation on Bitcoin market locally, the dominance of sellers is not over yet:
Notice how easily sellers pushed the price down at the 4-hour timeframe and how the candles look and what happens when buyers try to resume growth. With the same volume, buyers are faced with limit orders for sale, which inhibit the growth of Bitcoin price. Therefore, the probability of the fall continuation and the test of $9050 remains valid.
The situation on the chart of buyers’ marginal positions looks like the situation with Bitcoin price:
Buyers stopped confidently increasing marginal positions and freeze in consolidation.
Sellers have a similar mood situation. Their marginal positions also stand in place:
According to the wave analysis, if we consider the 5-wave model of Bitcoin price growth, now the wave (iii) continues its formation:
Sellers managed to correct Fibonacci level 0.382 yesterday. Thus, we see that the price drifts between the two levels 0.382 and 0.618. Breakthrough of one of them will mean continuation of vector movement in Bitcoin market. Given the above factors, we remain in a scenario of the growth continuation.
Image Courtesy: TradingView
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