Bitcoin Price and Technical Market Analysis January 24th, 2020

• Sellers were able to confidently break $8600 and move to $8200.

• Trading volumes during the fall do not yet force buyers to panic.

• A weak correction of the previous wave of fall allows sellers to continue the fall to $8080.

After the last 3 days of passive trading in Bitcoin market, sellers have decided to continue lowering the price and now reach the first loyal mark $8200. An unsuccessful attempt to break through $9050-9350 triggered an activation of sellers. These sellers had not seen significant resistance and motivation of buyers to continue their growth during the previous 3 days. Trading volumes increased as they approached the black channel’s upper trend line. But given the global nature of this critical point, buyers were unable to impose any particular struggle. However, the current fall can still be considered as a correction until Bitcoin price is above the price zone $7550-7800.

If you look at the whole wave of growth, we see that from 24 November to 5 January, buyers have accumulated capacity to break the yellow range. After its breakthrough, the price has started to grow quite confidently. If buyers manage to keep this range it will be a serious signal for a repeated test of the range $9050-9350 with a high probability of breaking it up.

The 4-hour timeframe allows us to draw a potential channel of Bitcoin price fall in the market. Also, it confirms the idea that the next wave of the fall should end in the price range $7550-7800:

As we can see, the last three candles on the 4-hour time frame have increased volume relative to the neighboring ones. However, if you compare these volumes with the volume of Bitcoin price growth, it becomes clear that to consider the current fall as correction is quite accurate.

With the price fall in Bitcoin market, buyers began to more actively close their marginal positions:

However, sellers were not very inspired by the price decrease. Since then, there has been no steady increase of the marginal positions on the chart:

According to the wave analysis, the first wave of fall (a) was corrected by wave (b) by 38.2%. Wave (c) = 0.618 * (a) at the moment. Given the weak wave (b), sellers have a good prospect of continuing to fall to $8080 without correction. Otherwise, a correction from $8200 is possible with a further continuation of the fall.

Let’s see if buyers can slow down the fall by the end of the week, as a weekly candle diminishes buyers’ chances of continuing to grow in Bitcoin market every day.

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