The uncorrected BTC price growth could not last forever. This is exactly the message you can see on the BTC chart today. After setting a new historical high of $41,950, buyers decided to go on vacation. This is evidenced by the daily candle on 9 January:
As you can see in the chart, the active pressure of buyers on the price in the period from 5 to 8 January ended with the beginning of the weekend. The result of this holiday was the BTC price fall by almost 20% in 3 days. In the previous article, we expressed our concern about the ease of price moved down by 10% in an hour. This fact turned out to be the first bell that the local power of buyers is waning. And to charge it with new power it is necessary to find a local bottom.
At the moment, it was the range of $32,000-$33,000, where from 2 to 5 January, sellers actively slowed down the BTC price. In addition, during this period there was an acceleration of growth in the market by breaking the upper trend line of buyers. Keeping the price above this range and fixing it above the trend line will provoke buyers to continue the confident growth trend. Now, the initiative of buyers, which began on 11 December, is not broken and control remains over them.
Deep BTC correction can begin below $32,000
However, the loss of the range of $32,000-$33,000 will very quickly change the balance of power in the BTC market. In this case, the mark of $26,000 will quickly feel the price hit.
A test of the range $32,000-$33,000 showed buyers’ interest in BTC:
As you can see, on the last 4-hour candle, which closed with a pin down, high volumes were formed. Also, another fact of closing the candle above the local level of $34,450 gives buyers a chance for a sharp counterattack with the first target of $37,000-$38,000. This counterattack should show whether there are many aggressive sellers left in the market. Therefore, tomorrow it will become clear whether to wait for the BTC market correction continuation.