The current market situation is explained by a practicing trader and founder of the project Crypto Shaman Vadim Shovkun.
Bitcoin has risen for three weeks from the $41,000 mark. The move appears fairly confident; momentum has pushed the price through the key $52,888. However, the price has gained about 40% with hardly any pullbacks, and some weak patterns that are already taking shape should be considered.
A double divergence has formed on the four-hour and eight-hour timeframes. Also noticeable are decreases in trading volume at each new local price high. Around $52,888, two stop-loss levels have formed, which are sure to be triggered if the price declines while RSI remains unchanged.
Two zones are of interest to buyers. $50,700-$51,700: the price could impulsively fall into this range, then rebound to the previous level, taking out stops. $48,300-$49,300: this zone is more reliable in terms of substantial, concentrated horizontal volume, as well as a clear and well-defined stop at the $46,886 level.
At the moment, price declines should be regarded in the context of a growth correction, and trading should primarily be from the long side.
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