Trader outlines the next moves for Bitcoin price

The current market situation is explained by the practicing trader and founder of the project Crypto Shaman Vadim Shovkun.

The objective of the analytical briefing is to indicate the most probable price moves, and to delineate zones where one should look for entry points as price action evolves.

The price moved along the more expected scenario, but after hitting the selling zone it failed to break the resistance.

How many times the lower boundary of the wedge will be false depends only on the ФРС. At the moment there is no threat from the stock market; quotes are around ATH.

After rebounding from the resistance zone, Bitcoin’s price fell by 10%, with yesterday’s gains fully engulfed on the daily time frame.

On higher timeframes, the price is in a balance phase, within the range $28 688-$42 460. Therefore the current situation can be traded as a classic sideways market: long from the lower bound, short from the top. Taking a short is a relatively risky strategy, while locking in positions—both scalps and medium-term ones— is a balanced decision.

On hourly timeframes, the price sits in the support-below-buyers zone (green zone). The $36 350 level acts as a liquidity shelf, which is likely to be taken in the near term.

There is also a pattern JOC + BTC forming on the hourly timeframes. In simple terms, a retest of the monthly accumulation (gray zone) may occur after the strong breakout on July 25.

A full resolution of the bearish divergence supports seeking long-entry points. There was no sharp liquidity draw beyond $42 460 (UT). There accumulated a large number of stops and liquidations from both two months ago and a week ago. As long as the support-below-buyers bar has not been engulfed, it is logical to operate from the long side.

The stop zone at $35 600-$36 200 is an interesting area for building long positions with the aim of holding until the upper boundary of the large range $28 688-$42 460. Exiting the position in case of non-fulfillment can be sought beyond the support bar around $34 800.

Removing the shelf at $36 350 could be fraught with a false breakout below the green zone. The main condition is that stop-triggering must be impulsive. If there is no sharp return above $36 350, this scenario will be neutralised and the movement highlighted by the red line will take priority.

Touching the $34 070 mark is a point of cancellation for scalping and medium-term longs. Consolidation in the $32 220-$34 070 zone is a strong signal that in the near term purchases should not be considered at all.