Bitcoin Price and Technical Market Analysis January 19th, 2020

• During the week, buyers managed to test the upper trend line of the falling channel and the price range $9050-9350.

• Due to the presence of aggressive sellers in the market, consolidation on the daily timeframe may continue.

• If buyers do not keep $7635, then the price movement within the black channel will continue with the target $5550.

The trading week on Bitcoin market ends with that sellers made an attempt of Bitcoin price reversal. The week was quite active and Sunday was no less active. For today, buyers have managed to test the critical price zone $9050-9350 and to test the mark $8600. What is the reason of this volatility?

The answer to this question can be found on the hourly timeframe. It shows in what turned an attempt by buyers to break through the critical price zone $9050-9350:

As we can see, buyers exiting the local range of price movement with the help of a single candle raised Bitcoin price by 2%, while using increased volumes. However, after this movement, the other part of buyers did not support this growth. After that the price began to fall without a doubt. After an unsuccessful two-hour attempt by buyers to restore growth, sellers finally felt the initiative in their hands. They just in an hour were able to return Bitcoin price to the limits of the black global channel.

The main question we need to find an answer to is whether the current sharp response from sellers is a defense or a change in the local trend? To understand this, you need to see if sellers are keeping pace and aggression over the next few days.

On a daily timeframe, the situation does not seem so critical to buyers:

Sellers have failed to fix below the 5-day consolidation. One of the probable scenarios is the continuation of consolidation. As we see in the market that both buyers and sellers have made efforts and as a result failed.

Margins of buyers this week suspended their fall:

Sellers have quite effectively increased their marginal positions. It looks like next week’s increase of positions will continue.

According to the wave analysis, buyers managed to continue the formation of the wave (c) and to test the critical level of Fibonacci 1.618. After that, there was a sharp local fall of the price on Bitcoin market:

Globally, at the chart now decides whether the fall wave (Y), which began at the end of October, is finished, or whether we should wait another wave of fall to be finally completed:

If buyers do not succeed in fixing above $9200, the critical point for continued growth is at $7635.

Let’s see if buyers can keep on the advantage and buy out the entire sellers’ offer in the next week!

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