Trader outlines Bitcoin price movement prospects

A practicing trader and founder of the project Crypto Shaman Vadim Shovkun discusses the current market situation.

Before analyzing the cryptocurrency market, let’s examine the technical picture on the S&P 500. Since the last analysis, the index breached the weekly range, defended the important level of $4276, and closed decisively above $4430.

Then the price formed a retest — given that it was from historically high volume, a flat-to-positive dynamic in the near term is likely. Optimism is further bolstered by last week’s earnings reports from technology companies, and despite Facebook’s decline, the market held up thanks to other large players.

Reports continue to come out, but they should no longer have such a large impact on the market.

Bitcoin breached the $39 000-$40 000 level on fairly high volume, doing so impulsively and with a clear close. A positive factor is the unfolding of a two-week consolidation to the left and consolidation on the four-hour to eight-hour timeframes.

In the mid-term, the situation is also starting to turn. Two well-closed weekly candles on high volume, a breach of the three-month downtrend in favor of confirming a three-month bearish micro-trend.

Locally the situation looks very positive; the main expectation is a move toward the resistance level of $46 500. It is unlikely to be breached on the first attempt, but one should expect a breakthrough within 1-2 weeks.

Subscribe to ForkLog’s channel on YouTube!