A practising trader and founder of the project Crypto Mentors, Nikita Semov, explains the current market situation.
Bitcoin has fallen rapidly over the past week. We will examine the prospects for the movement of the first cryptocurrency and where to consider trades.
On the four-hour timeframe, Bitcoin is in a downtrend. The corrective wave has entered the zone of high-volume densities, which indirectly suggests mid-term potential for a continuation of the upside momentum.
Overall, expectations are bullish. Selling assets in a panic is an irrational investment decision.
Let us consider a more local structure. The instrument formed a balance with bounds of $49 500-$47 000 — BTC will continue to oscillate within this range.
There is a high probability of seeing a decline after rotations to the $44 250 level. The possibility of realising such a scenario is indicated by the appearance of the pattern Absorption in the cumulative delta. This indicates the absorption of all market energy by limit densities.
The expectation is built on the continuation of the balance with a move to $44 000, after which a revival of the upward trend may be possible.
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