Trader outlines when Bitcoin price may reach new highs

A practicing trader and founder of the project Crypto Mentors, Nikita Semov, explains the current market situation.

Bar-by-bar analysis

Aggressive buying has a substantial extension beyond the horizontal and forms a JOC (JAC) pattern in the bar-by-bar VSA methodology. The spread for the past week is large by the matrix, and it is expanded within the wave, as well as one of the largest not only compared with the previous buying wave but with the entire bullish trend over the past year.

The large volume, which correlates with the buying spread, is an indicator of a major player in the market. In the current move, progress is increasing and the outcome is acceptable, quite effective in breaking through the significant Creek level.

Therefore, the main expectation from the current week’s bar is a test of the support bar of buyers, with a probable resumption of the upward momentum.

Price Action and VSA

The price has reached the upper boundary of the channel built according to Sperandeo’s methodology; therefore, a correction is quite natural. On the hourly timeframe there is a downside deviation in the SP format.

The price is trapped in a range, so the main expectation is from boundary to boundary with a likely buying reaction from the support-bar zone at current levels.

From Price Action above there are EQH which are most likely to attract a price reaction and will serve as a liquidity pool for the move. A reaction from an Order Block to buy is likely.

Analysis of horizontal volumes and deltas

At present, the watershed for resuming the uptrend is the zone $15,470-$15,530, which forms the core of the current balance. Without breaking through it, opening any long positions is dangerous.

Moreover, assessing control by delta, we can observe that the buyer has lost all initiative and control over the position, which is characteristic of a balanced structure.

Looking at the situation more locally, we can already see a formed triangle. Given that we are in an ascending structure, and that there are several substantial supports beneath us, a breakout of this triangle to the upside should be expected.

Nevertheless, open interest still shows no growth, indicating early-stage accumulation. Thus, we expect a continuation of the range narrowing, followed by an upside breakout to new highs.

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