Trader outlines whether Bitcoin will hit $20,000 soon

A practising trader and founder of the Crypto Mentors project, Nikita Semov, explains the current market situation.

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VSA and Price Action

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In the context of Volume Spread Analysis, Bitcoin’s price is trapped in a range with a Creek level at $19,564. Judging by the buyer’s reaction, there is aggression. A false breakout with liquidity grab should not cause concern — it is a standard price movement to activate stops.

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There is a squeeze toward the Creek level with a weak reaction from the horizontal, and volumes similarly decrease as the level approaches, further confirming a high probability of its breakout.

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At the $19,950 level, EQH are located, acting as a magnet for the price. Consequently, the $20,000 level is likely to be seen in the near term. The base breakout will likewise occur upward, followed by a redistribution of all accumulated volume.

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Analysis of horizontal volumes and deltas

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The formed EQH are formed by flooding with limit orders, thus at the moment they present a serious resistance [1]. The POC of the balance was also actively held by sizable sell-limit orders [2]. This gives every reason to believe that behind these levels lies a large number of stops, which will create a ‘free’ move to $20,000.

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Currently, there is protection of the weekly volume-weighted average, from which growth could begin today. This will push the price into an even tighter range and create a triangle with a squeeze toward the breakout level [3]. A significant support has formed at the bottom.

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Another factor driving the long-side rotation of this balance is the behavior of open interest, signaling the opening of positions on the upside and profit-taking on the downside. A spike in open interest was recorded at $19,500, which indicates the opening of limit short positions [4].

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