The current market situation is described by a practicing trader and founder of the project Crypto Shaman Vadim Shovkun.
After overview on 14.10.2022 the market underwent a pullback and began to recover. With about two weeks to go until the United States Senate elections, there is time to assess probable scenarios for Bitcoin’s price movement.
S&P 500
The market experienced a substantial pullback and then moved into a logical uptick. However, volumes are still thin.
What is expected at the moment? Around the 3920 level there is a significant resistance zone that the price is unlikely to break through.
A modest rise and then a flat period lasting 2-4 weeks seems plausible. Then a decline with a new low.
BTC
The price continues to trade in a narrow range of $18,400–$20,400. A small rise is still expected amid broad stock-market optimism. Additionally, the price has broken above a descending trendline that had formed over the past 2.5 months. This could give Bitcoin an additional impulse.
It is worth noting the market sentiment in the context of Bitcoin.
Seventy-five percent of public blogger-analysts lean toward the view that the first cryptocurrency has formed a bottom and is ready for a substantial rise into the $25,000–$30,000 range.
According to an analysis of 15 paid (VIP) Telegram channels, 86% are in favour of a rise. According to the results of a poll (as to where Bitcoin will come first), those expecting an uptrend win by a wide margin.
However metrics such as the funding rate and the liquidation charts indicate a lack of fuel for a rally, as was the case in 2020 or 2021 before the start of a serious rally.
What does it all mean?
For Bitcoin, any revival would be possible only on the back of positivity in the stock market. The rise is expected in the form of a “false breakout” — a move intended to gather liquidity before moving down toward the $17,600 mark.
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