A practising trader and founder of the Crypto Mentors project, Crypto Mentors Nikita Semov, explains the current market situation.
On the night of September 21, Bitcoin disappointed many traders by approaching the $40,000 level. We examine whether this mark is a local bottom or signals the start of a correction for the first cryptocurrency.
In an impulsive move, the price pressed up to around $39,700, where large buyers are concentrated. The market previously rose from these levels, and the bulls have again defended their range of favorable prices.
After such impulses, the most likely scenario is Bitcoin returning to the sideways range defined by the grey zone on the chart (boundaries $44,150–$49,200).
Why does this scenario seem most probable? A solid level should trigger a strong buyer reaction. The price has just tested exactly such a level.
At the very end of the spill, a ‘backlog’ formed — a huge volume of market sell orders absorbed by buy-side liquidity densities.
This points to bullish interest around the $40,000 level. Footprint confirms the thesis about the attractiveness of these levels.
The overall Bitcoin trend is upward. Looking at the trajectory of the previous weeks, the main expectation is for a continuation of the long-term trend.
The near-term scenario for the coming week is a return within the grey-balance bounds, fluctuations within this sideways range, and then an attempt to move higher. The key resistance levels are $44,150 and $46,300.
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