Trader does not rule out Bitcoin testing new lows

The current market situation is discussed by a practising trader and founder of the project Crypto Shaman Vadim Shovkun.

The flat market continues to torment market participants, depriving the most impatient of their deposits. Let us assess the current state of the crypto market to understand when one might re-enter it.

S&P 500

The overview of the stock index continues the two previous reviews.

The quote updated its summer low, forming another Lower Low (LL). On the bounce, the volumes accumulated in the area $4400 have not formed. It is not possible to speak of the price having found a bottom and its readiness to absorb the decline for the current year. A small rebound to the area $3830-$3900 is possible, after which a further decline is likely.

BTC

On the daily time frame, a clear squeeze toward the upper boundary of the downward-sloping wedge began forming from the very ATH. A breakout to the upside with a strong move in the same direction is possible, but statistically, exits from wedges occur through impulsive moves in both directions, not through a four-month flat.

The range $18 400-$20 400 remains a zone of uncertainty. As noted in the previous overview, if the price holds above $20 400, there is a high probability of updating the local maximum at $22 900. 

If it moves below $18 400, the local HL&HLL structure will be broken, which in turn, with a high probability, will lead Bitcoin to renew its summer lows.

Regardless of the outcome, the mid-term outlook for Bitcoin is not encouraging. According to the latest Sentiment analysis report, most traders continue to wait for an upside breakout from four months of accumulation, and the market remains more long than short.

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