The current market situation is described by a practicing trader and founder of the project Crypto Mentors Nikita Semov.
Price Action and VSA
The price breached resistance at Creek level ($24 298) with a confident, productive bar in JOC format based on modified VSA. The bar has a wide spread across the matrix, the largest within the current wave “BC” and substantial relative to wave “DF”.
At the test of $24 300, a long setup opens. The return to the green-highlighted range levels for opening long positions should be smooth: no significant spreads, fading of the sell delta, fading of vertical volumes. If longs are open, you can move the stop above break-even.
Analysis of Horizontal Volumes and Deltas
As the year draws to a close, one can look at the broader perspective and assess what lies ahead in 2021.
For most of 2020 Bitcoin traded within a range, forming a powerful volume core. At the time of writing the distribution phase lasts only 65 days. Statistics indicate the distribution should last 1.5–2 times longer.
On the sideways histogram [1], there are no comparable unloading or fixing volumes. This suggests that large market participants are still in the game.
Cumulative delta serves as an additional key to deciphering Bitcoin’s future [2] — organic growth (market structure) cannot proceed with such a seriously negative cumulative delta. However, since it appears on the chart, one can suppose we are dealing with a highly aggressive long-term player who buys up any dips with limit orders.
In plain terms, a certain large buyer does not allow the price to correct deeply. He sets up restraining walls of limit orders, thereby increasing his long position.
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