A practicing trader and founder of the Crypto Mentors project, Nikita Semov, explains the current market situation.
Bitcoin has been trading in a sideways range for two weeks, which is beginning to unsettle many crypto traders. We will assess whether a correction is due and outline medium-term targets.
Since October 15, the leading cryptocurrency has been within a balance band: the upper boundary at $63,200, the lower at $59,500. Any rotations within this range are natural behavior of the asset in a flat market.
To determine the likely direction of a breakout from the above-mentioned corridor, consider several factors:
- Price-action behavior. The intensity of selling waves BC, DE, FG gradually declines while buying remains unchanged. This signals bullish strength and a weakening of the bears.
- Divergence between Bitcoin’s price and cumulative delta. The latter is decreasing amid the flat market. All market supply is being absorbed by large buy-limit orders. This indicates there is an interested party purchasing Bitcoin at the current prices.
- Support within the range exists both above and below. However volumes differ markedly: downside protection is far stronger, as indicated by the red clusters [1], while volumes are about half as large [2] and [3]. This fact points to buying interest at lower levels among buyers.
Thus, we expect continued rotation within the range (as shown in the chart) with an upside breakout and surpassing $67,150. The first target according to the volume analysis methodology will be the $80,000–$85,000 range.
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