Trader outlines scenario for Bitcoin dropping below $30,000

A practising trader and founder of the Crypto Mentors project, Crypto Mentors Nikita Semov, explains the current market situation.

In recent weeks Bitcoin has been in a downtrend, with the global long structure broken. We are also sitting under the main traded volumes, which further indicate a short context.

Prices paused in a balance within $30,000–$42,500, reacting off the POC (point of control) of the buyer-volume array at $34,000. Statistically, exits from such balances usually occur in the direction of the trend.

However, at the moment there are a number of signs of buying strength that prevent Bitcoin from falling below $30,000 in the near term:

• an untouched extreme at $30,000, which creates the basis for a potential reversal pattern;
• the presence of large stopping volumes around $32,500, which have already significantly pushed the price up;
• large unproductive selling at the $31,100 extreme, suggesting a trap for sellers and the presence of a strong limit buyer in the market.

Given these factors, there is a possibility of a correction toward the strong selling level at $45,000. From there one can expect the downtrend to resume toward $30,000 and below.

Thus, the most promising entry points for joining the downward move are the $45,000 level or the $32,500 mark on a breakout and retest.

Subscribe to ForkLog’s channel on YouTube!