Trader explains Bitcoin’s behaviour within its price range

A practising trader and founder of the Crypto Shaman project, Vadim Shovkun, explains the current market situation.

At present, the price sits at the lower boundary of the range. Bitcoin’s momentum is not linked to the stock market – it is an autonomous move by the leading cryptocurrency. The decline may be due to the New Year holidays; more likely, the cause lies in heavy selling by holders. There have been many transactions from wallets aged 7–10 years.

Let us look at the market’s technical indicators. The latest wave of declines from the upper boundary has a steep selling momentum. The breach of PoC occurred as impulsively as during the rally (aggressive buy-side absorption).

A bounce to about $48,000–$49,000 is expected, into the PoC area, and then a new low beneath the red marks. In a range, trade from boundary to boundary; a move downward is not as likely as it may seem.

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