Trader notes a correction in Bitcoin price after breaching the $50,000 level

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

Bitcoin tested the level above $50 000, pushing to a new local high. Was the breakout real, and in which direction might the price of the first cryptocurrency move over the weekend?

At the moment, the quote is attempting to consolidate above the upper boundary of the range — $50,600. However, an abnormal volume appeared at the extreme (blue square on the chart). This is a cluster indicating local rejection of high price levels. From such a structure, a correction to the $49,700 level could emerge, from which there is a high probability of seeing a buyer’s reaction.

The global trend over the past months remains upward, and selling momentum is weak — from such formations, the outcome tends to move higher.

Our main expectation is for a minor test below followed by the continuation of the steady upward momentum.

Subscribe to ForkLog’s channel on YouTube!