Trader outlines likely decline in Bitcoin price

A practising trader and founder of the Crypto Shaman project Crypto Shaman Vadim Shovkun explains the current market situation.

After a decent, at first glance, impulse, the price has not managed to hold above the key high of $20,193, although it briefly surpassed it. Bitcoin continues to move within a micro-range of $18,300–$20,300.

As the price updated the recent high, it is interesting to look at the liquidation spikes. The current short clearly shows that there are few bearish traders in the market. That means there is not yet enough momentum to push the price higher.

On the daily time frame, the price is trying for the fourth time to test the descending trend line.

There are a few things to understand:

• A falling wedge is rarely broken to the upside through a flat — usually by impulsive movement;
• Within a range, there has already been one test of the descending trend line. It ended unsuccessfully;

Also worth considering the results of the report Sentiment analysis: Week #38. It aims to assess on-chain metrics and sentiments in social networks, blogs, and so on.

The current rise is likely merely a small rebound on the stock market. There could still be a small wave of growth into the $21,000–$22,000 area. But judging by the liquidation dynamics, the daily chart with a descending trend line and market sentiment, the conclusion is that a new wave of declines with new lows is what awaits the crypto market in the near future.

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