A practicing trader and founder of the project Crypto Mentors Nikita Semov explains the current market situation.
Bitcoin has been in a phase of shrinking volatility for several days, a pattern typical for crypto assets after major moves. Let us examine the prospects for digital gold’s growth in the coming weeks.
If we look at the global backdrop, Bitcoin remains in a sustainable uptrend. However, the current upside structure is clouded by a significant impulse on September 7. Let’s examine the reasons.
The reaction was triggered by the price reaching the Low Volume Node according to volume analysis. The impulse bar has a substantial lower wick, indicating demand at around $42,000.
Globally, in such formations there is nothing inherently alarming or detrimental to the bullish trend. The current pattern points more toward the need to form a sideways range before breaking through the key level at $53,000.
If we consider speculation, I would recommend looking for setups from boundary to boundary of the range, taking trades from the ‘cheap’ zone at the lower boundary to the ‘expensive’ zone—the upper boundary.
The main expectation in the mid-term is based on forming balance with an upward move (in line with the previous trend).
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