Bitcoin Price and Technical Market Analysis January 21st, 2020

• Consolidation in Bitcoin market continues in the narrow 0.5% range.

• Sellers have a slight advantage and are more likely to continue their fall with a local target $8200 and a global $7550-7800.

• If buyers manage to keep $8600, Bitcoin price will again test the range $9050-9350.

Today trading on Bitcoin market was extremely passive in terms of both volatility and volume. Bitcoin price drifted today in the ultra-narrow range of 0.5%, after which we will see a clear vector movement this week. The fact is that the consolidation which began on 19 January  is increasingly narrowing. If at the beginning of consolidation we saw a fierce struggle, a wide range of price movements and large volumes, then at the end of consolidation we see almost a price stop:

As we can see at the 4-hour timeframe, the beginning of the sharp movement of the price is possible on 22 January. And so far the situation remains uncertain. On the one hand, sellers at the 4-hour timeframe showed their local dominance and correction in the narrow range shows only the weakness of buyers.

However, on the daily timeframe, sellers’ initiative is still insignificant. Even though Bitcoin price has gone beyond the lower blue trend line.

Considering that buyers are still within the falling channel and locally a new wave of fall in Bitcoin market started, the probability of the test of $7550-7800 is a bit higher.

Buyers’ margins continue to decrease, moving to the purple range:

According to the chart of marginal positions of sellers we see that for the 4^th day the situation is unchanged. In principle, sellers are ready to continue to increase their marginal positions:

Locally, by wave analysis we see sellers were able to correct a new wave of growth from 10 January by 38.2%:

So far, Bitcoin price in the market is above this level of Fibonacci. However, if sellers succeed in fixing themselves below this mark, then the fall will continue to the next local mark $8200.

So, tomorrow we will see if buyers can keep $8600 and try again to test $9050-9350 or still $8200 is the next target in Bitcoin market.

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