Market outlook on the current market is provided by trader Илья Мещеряков.
The end of the past week proved fairly favorable for the cryptocurrency market — as I noted in the previous review, the downside targets of the pattern had been reached, and, therefore, for the continuation of the uptrend Bitcoin would need to reverse from around $16,300.
Fortunately for the bulls, this happened and Bitcoin is trading above $18,800 with the dominance index holding around 62%.
Further prospects remain positive, as the 17% correction helped reduce overbought conditions and away a significant portion of the open interest in longs, while avoiding unnecessary panic.
The correction also ended predictably — with the formation of a triangle and an impulse breakout to the upside. A correction that is sound from a structural point of view is typically considered a positive signal for further trend development.
Triangle on BTC with a subsequent up impulse, and the current trend line with the proposed stop-order zone (in red). Five-minute chart BTC/USDT from TradingView.
Bitcoin’s current ascent has formed an ascending price channel with a clear trend line — such moves are not only aesthetically pleasing but also risky. This is due to the large number of buyers placing their stop orders below the trend line.
Pay attention to the $18,200–$18,400 zone — it is where buyers’ stop-loss orders are most likely to cluster within the current short-term trend, making a pullback to these levels likely in the near term.
Longer-term prospects point to a fresh all-time high later this year — strategically important for attracting new capital from investors with substantial liquidity before holiday periods, than after them.
In previous reviews I already noted that the scale of such a shift is unlikely to be substantial, as it is a costly undertaking, and the outcome of reaching the $25,000 or $30,000 marks would be roughly the same (from a fundamental perspective).
Important levels in case of implementing a short-term downside scenario are shown on the chart — $18,070, $17,360 and $16,430, which would also serve as good entry points for a mid-term long.
The market delivered a well-structured correction, enabling a fairly rapid resumption of the ascent.
Bitcoin will take the lead, with market participants aiming to marshal all forces to push to a new historical high, after which profits in altcoins will be taken, giving them a fresh impulse to rise.
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