A practicing trader and founder of the project Crypto Shaman Vadim Shovkun explains the current market situation.
Bitcoin is showing signs of recovery. We examine whether a continuation of the rally is likely.
On the daily time frame, a small ascending wedge is forming.
In the chart below, the yellow-highlighted area marks the very same historical volumes that were discussed in previous reviews. Prices had already attempted to return to this range, but could not sustain themselves in this zone.
The momentum of a drop of more than 40% is very likely. If, over the weekend, a certain rise forms, it is quite possible that the gap will close and the price will return to previous levels.
Due to the extremely high traded volumes, in the medium term it is better to operate with long positions. However, for a trade it is reasonable to wait for a good entry point. Given the observations, the market may offer even more favorable prices for this.
Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.