A practicing trader and founder of the Crypto Mentors project, Nikita Semov, explains the current market situation.
Bitcoin is still within the balance range of $43,000–$52,500, but a pattern is forming that points to a high probability of moving higher and reaching a new ATH [simple_tooltip content=’historical maximum’]ATH[/simple_tooltip].
One of the most common setups for exiting large accumulations is the price’s failure to reach the lower boundary. In classical technical analysis, the 50% of the range is usually highlighted, but in reality price action tends to begin from the point of maximum volume, which in the vast majority of cases sits roughly in the middle of the range.
At present we see elevated activity at the POC of the entire balance of last month, as well as of last week. The appearance of a volume fill indicates that smart money is flowing into the market, and the reaction to it is purchases. This activity is also corroborated by the tape showing a large number of purchases at the indicated level, above 70 BTC at once.
Nevertheless, during testing of the [simple_tooltip content=’oversold level’]VAH[/simple_tooltip] ($52,500) there was also anomalous activity. This is why a pattern of ‘compression’ toward the upper bound of the range is likely, rather than an immediate breakout.
Thus, we expect Bitcoin to rise to around $52,000, with potential to break out of the range and form a new trend structure.
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