A practicing trader and founder of the Crypto Mentors project, Nikita Semov, explains the current market situation.
We assess the current situation and the potential for Bitcoin’s decline over the coming week.
The $39,000 mark was a strong selling zone. From it the price, as expected, reacted.
At the moment, in the $30,000–$41,000 range there is a weakening of buyers from the demand zone formed from the left side of the chart (a volume core plus a horizontal demand line).
According to Price Action, the price attack angles in waves AB, CD, EF and G1G2 are gradually diminishing. Price momentum likewise continues to fall. Such formations in seven out of ten cases are followed by further downside. In this context we expect a breakout of the range and a test of the last minimum of $30,000.
Another negative sign hindering Bitcoin’s near-term growth is trading below the last important resistance volume located at $33,500. It’s possible that, after a weak pullback to test this level, the price of the first cryptocurrency could plunge to the zone below $30,000. From that level, one could look for short-entry points.
For now, we do not recommend looking for long positions or buying altcoins. The downtrend in Bitcoin’s price shows signs of continuing, rather than ending.
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