The market’s current situation is explained by trader Ilya Meshcheriakov.
The cryptocurrency market is dominated by upbeat optimism. Bitcoin has briefly touched the $12,000 level, and many altcoins have hit fresh year-to-date highs. BTC’s dominance index is slowly declining. At the time of writing, it stood at 60.36%.
In the mid term, the growth target after exiting the broad accumulation zone is $13,000, with an intermediate level at $12,300. However, one should not neglect monitoring local moves to execute short-term trades on pullbacks effectively.
On August 2, a long squeeze formed on the chart: from a peak of $12,100 the price fell to $10,530, but quickly moved back above the $11,000 level, where buyers have since held it. Such a squeeze makes buying across the entire spectrum of coins safer, as most ‘excess passengers’ have been flushed from positions.
The anticipated stop-order accumulation zone (marked in red) and the long squeeze of August 2 (arrow). BTC/USDT hourly chart from TradingView.
Regarding current support levels, thanks to the formed range they can be recognized — $11,000 and $10,815. Local longs with short stop-orders will look good from them. A strong local resistance level is $11,400; breaking it will allow Bitcoin to attempt to reach new yearly highs.
Bitcoin has effectively entered a new accumulation phase — trading in a narrow range with false attempts to break upward and downward. You should be prepared for stop-orders to be triggered and it may be necessary to make several entries for a successful long.
Local accumulation zone (highlighted in blue) with marked horizontal boundaries and the intermediate level of support. BTC/USDT hourly chart from TradingView.
The outlook remains moderately positive; however many altcoins show signs of ‘fuel running out’. Most often this leads to BTC dominance rising, then back to the ‘altseason’.
Bitcoin is not prone to substantial corrections after exiting the accumulation zone, so any significant drop should be treated not as an opportunity to buy cheaper, but as a moment for reflection.
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