The trader Илья Мещеряков explains the current market situation.
After attempting to push the year-to-date high and several short squeezes, Bitcoin’s price began to move sideways. The altcoin market has ended its rapid rise and begun a correction. Spikes are visible only for a few coins. The others clearly require support from BTC.
Another reaction to the resistance near $12,000 prompts reflection. On August 2, we already saw active selling from this level — the price fell by more than $1,500, and yesterday, as it approached this zone, it was pushed down by more than $500 again.
This can be explained by buyers being squeezed out; however, after that the price failed to recover and again moved toward $11,500.
Global resistance zone (marked in red) and two accumulation zones (marked in blue), with intermediate resistance and support levels drawn. BTC/USDT hourly chart from TradingView.
We are in a sideways move of $11,500-$11,900. To continue higher to $13,100 we need a breakout above the zone near $12,000. Selling pressure there is lower than a week ago, but it remains. Local trades can be conducted from the boundaries of the range after false breakouts.
The most likely scenario now is a shift to a more global accumulation zone bounded by $11,000 and $12,000. We have seen this before when the price was between $8,600 and $9,900.
The altcoin market is likely to continue consolidating and be marked by bursts in individual coins.
Local accumulation zone (highlighted in blue) with marked horizontal boundaries and an intermediate resistance level. Fifteen-minute BTC/USDT from TradingView.
Despite local headwinds, the market still looks strong in the long run, but position traders may have a tough time as the market has often begun to accumulate stop orders and squeeze out buyers.
Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news and polls.