Trader flags key support level for Bitcoin above $13,000

A practising trader and founder of the project Crypto Mentors, Nikita Semov.

Order-flow analysis

The past week’s spread was of moderate size, shrinking relative to the previous buying spread. Volume is large, but the correlation between spread and volume is not evident.

Progress stalls when buyers manage to break through the horizontal, prompting a sell-off and running into another horizontal around $14,000. A selling reaction in such a scenario is entirely understandable.

The delta of last week’s selling activity is another argument in favour of selling this week. The expectation for the current week is a selling bar.

According to candlestick analysis, the same “Three White Soldiers” pattern. Consequently, significant reversals are unlikely. This pattern is a fairly strong argument in favour of a long-term continuation of the longs after a probable correction.

Price Action

A move out of the global range with a divergence across the move, and a projection breakdown as price approaches the resistance level on volume spikes near the opening, in a one-bar engulfing pattern from the week, hardly signals price strength.

On a more local chart there are UT + TUT. There is also a BUY wall at attempts to break the level and a huge shelf of liquidity in the lower part of the range, which has expanded only in one direction. Therefore the most logical expectation is to test the support bar (blue zone) with a liquidity grab.

In Price Action terms, the rise is held by an IMB and a bear OB. There is also a BUY wall when attempting to break the level and a huge shelf of liquidity in the lower part of the range, which has expanded only in one direction. Therefore, the most logical expectation is to test the support bar (blue zone) with a liquidity grab.

Thus, the price should not breach $13,190. A breakout would undoubtedly lead to an impulsive decline into the indicated zone. For now, everything looks like a setup for a long-impulse move.

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news and polls.