Trader Signals a Correction Before Further Bitcoin Gains

The market update is provided by Nikita Semov, a practising trader and founder of the project Crypto Mentors.

The pace of Bitcoin’s rapid rise has slowed near a very strong level. We examine the most likely scenarios using the volume-based analysis methodology.

The first cryptocurrency approached the key resistance level ($49,000), where it is attempting to consolidate. Given the formation of a weak breakout and the fading of the price projection in Price Action analysis, it is most likely that the price will correct toward important support levels before continuing higher.

The strongest levels stand at $45,750 and $39,750.

Locally, at the main level, a range is forming. Long positions should only be opened after its formation is complete and a full move into the value zone has occurred, with an expectation of a retest (as shown in the diagram).

If such a pattern does not emerge and the price exits the range to the downside, traders should seek short counter-trend trades toward the nearest support levels noted above.

Subscribe to ForkLog news on VK!