A practicing trader and founder of the project Crypto Mentors, Nikita Semov, explains the current market situation.
Although the move unfolded as outlined, attention should be paid to particular items, such as the combination of volume and progress. The triangular range began a breakout to the upside, and the move progressed through SOS, which in classic VSA is read as an indication of the strength of the price movement.
The selling pressure was overcome, indicating long-term buying interest. However, such a large vertical volume has not yet managed to break through the $10,950 level; it merely tested it, weakening and accumulating liquidity.
With a high degree of probability, I expect a pullback lower, potentially to the upper boundary of the triangle and the breached BU level, followed by a decisive rally.
Also watch the resistance at $11,126, from which long setups could be sought if there is a decisive breakout with a close above it.
Analysis of horizontal volumes and delta
The global auction for Bitcoin looks extremely promising. First, we have moved out of balance, overcoming all major resistances in the $10,870-$10,920 range, which opens the path higher.
The last stop before a rise could be the $11,190 extreme, though there are no hard indications of a reversal at these levels yet.
Analyzing the delta dynamics, we observe a clear predominance of buyers, another important positive sign for upside.
From a shorter-term perspective, we see a volume spike against the trend, signaling a local pause and the start of a correction. Open interest metrics corroborate this. For the uptrend to be sustained, current readings are very weak.
Also expect a correction toward key delta- and volume-based levels, namely $10,880. For the uptrend to continue, the $10,820 level must hold. If it is breached, the situation will change.
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