Bitcoin Price and Technical Market Analysis January 25th, 2020

• Buyers’ attempt to break the local falling trend ended with a test of the upper trend line of the newly created channel.

• Buyers’ volumes are not enough for a reversal, which confirms the smooth return of price to yesterday’s lows by sellers.

• The next local price stop is probable at the price $8070.

Yesterday in the market, Bitcoin buyers tried to change the situation, stopping the fall near $8248 and raising prices by 3.5%. At the 4-hour timeframe, we see that this attack was at low volumes. It ended just above the upper trend line of the forecasted channel which we drew in the previous analysis. The reluctance to continue Bitcoin price growth and to break the local fall wave is noticeable even in the price returning to the range of consolidation which was on 23 January. By the candles on the 4-hour timeframe, we see that buyers are not ready to defend the growth and keep the price. So, sellers without problems control the situation.

Also on the 4-hour timeframe, we added another dotted trend line that sellers are unable to pass, accelerating the fall. It means that, with steady volumes, the price may move in the newly created wedge until 28 January. After that, buyers are more likely to try again to exit from the global black channel of Bitcoin price fall.

On a daily timeframe, we see that yesterday’s daily candle in Bitcoin market is not at all inspiring to the thought of a price reversal, but rather a suspension of the fall for a while:

Sellers are approaching to consolidation, which lasted from 7 January to 13 January. This consolidation assured buyers of their sufficient strength to keep the seized price zone $7550-7800 and gave a boost to price growth. Therefore, in the coming days we will see whether buyers are ready to prove their strength again and stop correction in this price zone.

The situation with marginal positions of buyers remains unchanged and the tendency of their decrease is not completed:

Sellers stopped aggressively increasing their marginal positions before the previous high and became more passive:

According to the wave analysis in Bitcoin market, locally buyers were able to correct the level of Fibonacci 0.382 at the price mark $8522. After that sellers continued the wave of fall (c):

At the price $8070, the wave (c) will be equal to the wave (a) in length and to continue Bitcoin price fall will be required a correction. Let’s meet tomorrow on the analysis of the last trading day of the week.

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