The current market situation is explained by a practicing trader and founder of the project Crypto Shaman Vadim Shovkun.
For almost three weeks, the leading cryptocurrency has been trading in a sideways range between $57,800 and $63,800. We will attempt to highlight good zones for trading decisions.
There was a false breakout of the range last month, accompanied by an update of price maximum. The volumes traded on that basis were low.
The volume profile is concentrated squarely in the center of the range, indicating no clearly dominant side. Two bearish divergences have been almost neutralised by the prolonged consolidation.
On the weekly chart, there is a strong squeeze toward the $64,800 level with upside potential. The previous weekly candle closed with a solid lower wick. It is also notable that the range sits above the PoC of the spring range, suggesting accumulation rather than distribution.
There are many technical arguments in favour of continuing the bullish rally to the ATH. Given the prolonged accumulation, the price could gather liquidity for a move higher.
The zone $53,700-$56,000 represents an area of stops and liquidations that the price may visit before updating ATH.
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