Bitcoin Technical Market Analysis 20th September 2019

Bitcoin Technical Market Analysis 20th September 2019

Quite impulsive was Thursday for Bitcoin and closer to the end of the day we decided to analyze the emotional release of energy. The day began with the consolidation breakthrough down of its range $10,000-10,300.

The rather effective breakthrough, which ended with a $9,800 test, showed the local weakness and panic of buyers whose stop limit orders were activated. Analyzing the daily timeframe in the previous analysis, we wrote that sellers are passive enough to carry out their attack. And it is likely that consolidation will continue. However, as buyers did not attempt to counter-attack, sellers were able to squeeze the price lower.

The timeframe clearly shows that this panic lasted exactly one hour:

Bitcoin Technical Market Analysis 20th September 2019

Though, breaking does not mean fixing. Now, buyers are quickly returning the price to the consolidation zone $10,000-10,300. In such a way creating a considerable candle on the daily timeframe.

For rehab, buyers need to firmly fix themselves over this price mark in the next day to start a new attack.

An interesting situation is shown in the chart of the marginal positions of Bitcoin buyers:

Bitcoin Technical Market Analysis 20th September 2019

Just during main sellers’ attacks and local low updates, buyers actively increased their positions. It looks like buyers were expecting a price reduction for aggressively buying Bitcoin.

In the big trap are now sellers who, after breaking through the price zone of $10,000-10,300, believed in the continuation of the fall. And now during a sharp counter-attack of buyers, they sharply close their positions, which actually were opened at local lows:

Bitcoin Technical Market Analysis 20th September 2019

Based on the above facts, it seems that unsure buyers have given their positions to other buyers. Who in turn were eagerly waiting for the price to fall and immediately seized the initiative. If this scenario is correct, then we will have a sharp growth to $11,000 by the end of the week. However, first let’s see how the candle will close today.

According to the wave analysis, buyers broke the liquidity level 0.618, but this breakthrough happened for a moment:

Bitcoin Technical Market Analysis 20th September 2019

The next moment, buyers are already testing the upper limit of consolidation we discussed in our previous analysis. Therefore, we expect the continuation of surprises from buyers. Also, the $11,000 test with probable breakthrough of the trend line and a price stop at $12,180:

Bitcoin Technical Market Analysis 20th September 2019

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