Trader outlines prospects for further Bitcoin downside

A practising trader and founder of the Crypto Shaman project Crypto Shaman Vadim Shovkun.

Bitcoin breached the $46,500 support level. We assess whether further downside is likely or if the correction has already ended.

During the month, the price moved within a flat range of $46,500-$52,000. A clearly formed pattern BUI, i.e., an impulsive breakout from accumulation on anomalous volume. This occurred after pressing against the lower boundary, which provides additional argument in favour of the breakout’s authenticity.

There is also an increase in sellers’ aggressiveness within the range, while buyers’ aggressiveness wanes.

The $39,500-$40,900 band is a zone of high liquidity. It was not swept before the last wave of asset growth when Bitcoin reached a record high. Now, after absorbing that rise, liquidity is likely to be gathered.

There is a possibility that, before reaching the $39,500-$40,900 zone, the price forms a retest of accumulation. The $45,300-$46,100 range is an excellent place to look for short positions with a very short stop and a good risk-reward ratio.