A practising trader and founder of the project Crypto Mentors Nikita Semov explains the current market situation.
Bitcoin met a reaction from a strong resistance zone of $41 000 (the upper bound of the balance-value zone of the last weeks). Given the global price context and the phase we are in (the balance phase), the medium-term downside target could be in the $33 600-$32 850 range.
On the one hand, the range marks the lower boundary of the balance-value zone, and on the other hand, a concentration of volumes that previously triggered a rally. Clearing these levels with a breakout and a retest will be a clear trigger for further downside, taking prices to new lows around $30 000.
At the time of writing, the price has reached the $37 000 support level, from which a modest reaction within a corrective move is highly likely.
At weekly highs, we see a flare-up of clusters indicating activity at the upper boundary. Since the volume positioning has already occurred, we can classify them as selling.
It is prudent to join the short move after a breakdown of $37 000 and a retest of that level.