A practising trader and founder of the project Crypto Shaman Vadim Shovkun explains the current market situation.
Bitcoin continues to move in a tight range. Resistance remains in the $21,800-$22,200 band, support at $18,700. The main cluster of volume sits above, around $21,100.
In the $21,800-$22,000 range there are a large number of liquidations that are likely to be cleared soon.
Today’s 6% downward correction may be linked to the drop in the S&P 500. If the near-term “barometer of the U.S. economy” holds at around $3,740, that would be a positive signal for the leading cryptocurrency.
Bitcoin has also broken the downward trend line, transitioning into a flat with an impulsive rebound.
Within the sideways range, this is a fairly bullish signal in support of moving toward the upper boundary of the range near $22,000.
The second quarter of 2022 was Bitcoin’s worst in 11 years.
From April to June, the primary cryptocurrency fell from $45,000 to $19,884. In the bear markets of 2014 and 2018, quarterly declines did not exceed 39.7% and 49.7%, respectively.
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