A practising trader and founder of the project Crypto Mentors, Nikita Semov, explains the current market situation.
Bitcoin has drawn close to its ATH, but fresh data indicate that before updating the extreme, the price could enter a correction.
First, the spike in volumes ‘at the highs’ in the $56,600-$57,100 range is notable. The price is gradually slipping below them, indicating selling pressure from capital inflows.
Second, the move toward the last local extreme of $58,300 was accompanied by a surge in market buys, which subsequently yielded selling. This pattern points to price-level defense by a large-limit seller.
Third, from a Price Action perspective, we can observe a breakdown of price projections, which also indicates buyers’ weakness.
Thus, in the current context, considering short-term short positions is reasonable; however one should not forget that this is a counter-trend. The main priorities for long-term buying have not changed.
Bitcoin is expected to hover around the $54,000 level, where a substantial cluster of buyers sits. Be vigilant, as this move could break the ‘obvious to all’ trend line, prompting many retail traders to short while a large buyer accumulates a position.
After such a correction, a new ATH is expected.
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