Trader identifies key Bitcoin price-support levels

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

To understand what is happening in the crypto market, consider a 4‑hour timeframe. We are dealing with a very wide range, with Creek (resistance) at $12 133 and Ice (support) at $10 440.

For a range-bound structure, moves occur from boundary to boundary of the range with all manner of outsized moves, shakeouts, [simple_tooltip content=’Shakeout — a sharp drop or rise in prices after a clear trend.’]shakeouts[/simple_tooltip] and other “delights of life”. Therefore, in the mid-term horizon — a move toward $12 000. But of course this will not happen today or tomorrow.

Last night a selling spree formed, which is a braking candle formation with price rejection and an indicator of ineffective sellers. The latter, on colossal volume, could not overwhelm buyers.

To this bar of the seller’s mispricing (bun) attached a footprint and delta, through which the bear’s insolvency is visible. Using these data, we conclude that after the bar disruption marked by the pink circle, the price will head upward.

Analysis of Horizontal Volumes and Deltas

They fell exactly on the volume core of the previous balance. At the extreme, there was selling inefficiency, which caused the correction. At the moment the situation can be described as pre-flat.

An important mark is $10,525. If this threshold is surpassed, the first reversal wave will form. After that, one can expect a corrective move down to $10,620 and a potential full reversal toward $10,750.

A break of the $10,380 low will take us to the next important support at $10,275, which has already been tested and produced a good reaction. So expect not to move below these levels.

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