Trader highlights potential for Bitcoin price upside this week

A practicing trader and founder of the project Crypto Mentors, Nikita Semov, explains the current market situation.

Bar-by-bar analysis

The bar of the previous week closed with weak selling pressure.

The spread is small in both this wave and the previous one. An important factor is the renewability parameter — with average rising volume, the price makes a weak bounce from the selling zone and tests the buying level (creek). Selling momentum faded, and there has been no proper reaction from the 0.5 level. The delta on the selling bar is green.

I expect the current week’s bar to move up.

In candlestick analysis, the pattern is the “umbrella”, and the two-candle formation closely resembles a “knife”.

Price Action and VSA

There is no selling pressure, although the price lies in the volume zone of a major bear and by all indications an impulsive downward reaction should have occurred. We do not observe it; instead of impulsive bars downward we see a weak angle of selling pressure. A large balance is likely forming, from which a move higher will proceed. According to VSA patterns, JOC + BTC with NR were formed, so the nearest priority is to move long, updating the high at $11,118, since on the downward correction the local minimum was not breached and buyer liquidity was not collected.

Analysis of horizontal volumes and delta

Globally, we have again approached an important resistance zone and have not observed a reaction in either volume or delta, which raises questions about the effectiveness of this level.

Moreover, in the recent balance a few large-volume blocks with sizable purchases were traded up, indicating potential for growth. If we hold above $11,000, the next target is $11,750.

In the mid-term auction we see a classic pattern: impulse with pushing volumes, overcoming the POC and a retest. From such a formation we expect a renewal of purchases with breaking of the highs.

It will also be interesting to watch the tape that burned through very large purchases at the day’s open. Since the trades happened in seconds — this is nothing but a high-frequency algorithm. This fact only confirms that a reversal is not on the cards.

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