A practicing trader and founder of the Crypto Mentors project, Nikita Semov, explains the current market landscape.
Bitcoin has retraced to strong support levels, displaying signs of demand there — signaling a likely price move higher over the next week.
To construct trading scenarios, essential levels should be identified — they are built not from extremes or touchpoints, but from the profile of horizontal volumes and cluster activity.
Significant demand levels sit at $46,800 and $46,300. Provided the price breaks out of the range and performs a reverse test of these marks, a continuation of the long move with a new local maximum near $50,000 can be expected.
At the moment, the price of the leading cryptocurrency shows no initiative to sell, both by the Price Action approach (a weaker angle of attack on the AB selling wave) and by Market Profile (a large number of Bad Highs formed on top). This indicates a lack of interest from aggressive sellers.
The primary scenario is a long setup after a deeper test of the levels mentioned above. A key resistance level on the way to the local high will be $49,000 — from which there is a high probability of a correction.
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