A practising trader and founder of the Crypto Mentors project, Nikita Semov, explains the current market situation.
Bitcoin has risen 2.6% this week. Is there enough momentum for the leading cryptocurrency to break through key resistance, and in which direction is the asset likely to move over the weekend?
Analyzing the four-hour time frame, attention should be drawn to the price approaching the upper boundary of the global trading range in which the asset has been for nearly four months. The area around $41 000 is a key zone of seller activity, and we are more likely to see their activity and an attempt to push the price lower.
Buying Bitcoin at current levels is unattractive, as the quotes have entered a zone of locally expensive prices.
The supply zone above has previously elicited a confident and impulsive bear response, so a test of the $43,000-$45,000 range appears highly likely in the form of a breach followed by a return back into the range boundaries.
Locally, buyers show weakness, as the market has formed a BOS (break of structure) — a new low from which the most recent high was formed. This signal indicates a lack of initiative from buyers to purchase at previously favorable prices, and bears may absorb the entire market demand.
Thus, the most likely weekend scenario is a continuation of rotation within the local range marked in blue, with the potential for a false breakout to $43,000-$45,000 and a return to the global range.
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