A practicing trader and founder of the project Crypto Shaman Vadim Shovkun explains the current market situation.
After many weeks of bear market, Bitcoin has shown a fairly decent rise on the daily and even weekly timeframes. Should this be interpreted as the start of a reversal?
In the previous overview the growth scenario was described as the most probable. It was also noted that around the $21,500 mark there were many liquidations. Thanks to them the price surged impulsively to $22,500.
For now, the momentum of this move is being absorbed. Thus, after a 15% rise, a breather in the form of a sideways move is needed. The price is currently in the strong resistance zone of $21,800–$22,000.
The negative factor is that, against such a powerful upward impulse, there was no abnormal volume observed. Accordingly, there is no truly aggressive buyer. It is not ruled out that the price was driven up merely to flush out a large pool of accumulated short positions.
For now, a modest pullback—roughly to the halfway point of the ascent, toward the rising white line—seems the logical continuation.
The second quarter of 2022 was the worst for Bitcoin in 11 years.
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