Trader explains where Bitcoin’s price could land after dropping below $50,000

A practising trader and founder of the project Crypto Mentors Nikita Semov discusses the current market situation.

On the weekly time frame, there is a slight tilt toward buyers when evaluating both the overall market context as well as the analysis of the latest bars. But more signs point to a decline.

Not-so-positive warning signs have begun to surface in the form of falling volumes and buying pressure, as well as a breakdown of the price projection. There may be a case for closing long positions, as a fairly deep price drawdown cannot be ruled out.

Looking at the past week’s candle reveals seller weakness, manifested in a relatively large candle shadow and disproportionately large negative delta. The latter signals the presence of buys via limit orders. Nevertheless, local data contradicts the broader context of the trend fading.

From a weekly perspective, we anticipate bears and a price move into the $49,000 zone.

Trading ideas and near-term prospects

The breakout from the tightening range in the form of a triangle occurred to the downside. This reflects sellers’ initiative from the upper boundary of the medium-term range of $58,500–$43,800.

The first support level to which we expect the price to fall is $49,000. If not held, the next is $43,800. The priority is a short setup with entry after a modest rise to $56,000–$57,000.

Subscribe to ForkLog’s channel on YouTube!