The Weakness of Bitcoin Buyers is Clear
The medium-term trend turned out to favor sellers. This downward impulse was fairly natural.
The medium-term trend that we predicted on Wednesday turned out to favor sellers. This downward impulse was fairly natural.
A key resistance level that has been protecting the whole movement, that started at $410, was broken through. A conflict of interests happened at the $427 mark, and it is there that the future of the existing upward trend was decided.
The situation was resolved in favor of sellers.
If there was a larger number of buyers, the movement wouldn’t have stopped.
Bitcoin’s price would have bounced back to the level of $435. The $427 price would be good for the following growth, but it has not enjoyed any significant demand.
Thus, the market has returned to the medium-term resistance, working in accord with the weekly scenario.
When should a new short-term trend impulse be expected?
For a downward trend to continue, a new wave has to be formed. The Bitcoin price has to break through the $417.6 (BITFINEX) resistance and fortify there. Then, a further decline to $410 can be expected, given that the dynamics stay aligned with the trend.
A break through the resistance of $428-30 is necessary for a return to the medium-term level of $445. There is a need for a significant force in the form of a first wave. A stop at that level would indicate a lack of demand for sellers, and a third wave would confirm that.
This is why the BTC/USD market will stay quiet before any of the two levels of $417.6 or $428-30 are broken through.