The market’s current situation is explained by a practicing trader and founder of the project Crypto Mentors Nikita Semov.
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Price Action and VSA
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It is essential to examine the structure of market fluctuations, as that is the element that reveals the potential for price movement.
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The price formed a JOC pattern on an uptrend. There is no hint of a trend break, because the break in structure sits below the low [‘dagger-blades’ according to Japanese candlestick analysis].
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The market structure is bullish, and new highs signal buyer strength. A buy imbalance in oversold conditions is additional confirmation of local buyer ineffectiveness.
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A correction to the $12,450 level to collect liquidity is likely, followed by a continuation of the rally higher. The only resistance could be at $13,970, from which a correction is possible but not a reversal of the uptrend.
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Analysis of Horizontal Volumes and Delta
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Globally, the price has cleared the nearest resistance zones (POC and VA). The chart shows a very confident rise, confirmed by the appearance of push-through volumes and their protection.
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Based on accumulation–distribution theory principles, the squeeze indicated in the screenshot lasted nine days. That suggests further buying for at least another week.
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During this period, the price could approach the important level $14,000, which stretches back to 2017 extremes. It is from there that corrective moves can be anticipated.
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Locally, a balanced structure has formed. However, there are no fixing indicators or volumes in the counter-trend, which is favorable for the continuation of the rally.
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There is currently active selling pressure, evident from the cumulative delta. Also, considering the balance-building structure, which inevitably expands in both directions, a move lower with a break of the trendline [1] is possible — to manipulate and trap the crowd into shorts, and with the removal of the “shelf” [2] — to seize liquidity and test the buyer-volume array.
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Liquidity in accumulation is diminishing, hinting at an imminent expansion of the boundaries. So a similar scenario could unfold as early as today or tomorrow.
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