Bitcoin Price and Technical Market Analysis January 16th, 2020

• Bitcoin price has stopped in a narrow 2% consolidation.

• Local critical point of buyers moved to $8450.

• The main scenario of the growth continuation and test of $9200 is still valid.

Passively and uncertainly sellers still start their counterattack on Bitcoin market today. After unsuccessful closing of the daily candle, both in appearance and volume, Bitcoin price has lowered by 2% today. The upper trend line was able to stop buyers, but did not motivate sellers to drastically change the market situation. In such a way they showed everyone a confident transition of initiative.

The 4-hour timeframe shows that the price correction up to $8450 is acceptable because it occurs within the growth channel:

The local transition of the initiative will be noticeable after sellers have fixed below the red trend line.

Therefore, despite yesterday’s reversal candle, the continuation of Bitcoin price growth and the test of $9200 remains the main scenario.

If you look at the weekly timeframe, buyers are confident in the market and form a solid attack:

In previous analyzes, we wrote that the falling trend which began in late June 2019 is more inert and reminiscent of a correction. Therefore, breaking this trend should pave the way for buyers to the price mark $11500. However, it is also noticeable on the weekly timeframe that globally, sellers have not yet checked the important price zone $7550-7800. And the probability of testing this price zone as long as the price is trading inside the black channel remains high.

Today, buyers have suspended closing their marginal positions as the Bitcoin market stops in consolidation:

Sellers are also less vigorously increasing their positions, expecting a new vector price movement:

According to the wave analysis, the following target of buyers remains unchanged. It is within the yellow price zone $9050-9400:

If buyers manage to close the weekly candle above the price $8600 then next week, buyers will continue their fight. Otherwise, sellers will close the week with reversal candle. From Monday we will investigate the counter-attack of sellers.

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