A practicing trader and founder of the Crypto Mentors project, Nikita Semov, explains the current market situation.
Bitcoin has spent the entire past week in the green and is showing persistent buyer interest to move the price higher. Let’s examine the prospects for further movement and identify key support and resistance levels using the volume-analysis approach.
The price of the leading cryptocurrency is approaching a key resistance level at $49,400. This is the VAL level in volume analysis—the boundary of the range that began forming on May 11.
Upside potential opens to $56,000—the level of maximum volume traded from the left-hand side. Given the number of volume clusters that have moved in the lower portion, a strong upward momentum could be expected.
There are two scenarios for reaching this level:
- an immediate breakout of $49,400 and movement to $56,000 with minimal pullbacks;
- receiving a reaction at the $49,400 resistance with a pullback to the important support range of $41,250-$39,750 and then rising to $56,000.
For now, the more likely scenario is a pullback toward the $41,250-$39,750 support range. The Shift POC, formed near the global VAL, points to this. During this correction, setups for buying assets with medium-term potential could be considered.
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