A practicing trader and founder of the Crypto Shaman project, Vadim Shovkun, explains the current market situation.
To understand the current situation, one should refer to the previous overview, which discusses Bitcoin’s mid-term price outlook. An analysis of the weekly time frame, with a focus on peak volumes and weakening depths of pullbacks, is crucial.
Bitcoin is moving within a range-bound corridor of $15,700–$17,200. At the moment, the price has tested the upper boundary of the range. The retracement angle is weaker than the rise. The price impulsively broke the PoC of the entire range, which signals selling pressure.
Sentiment also needs to be considered. Over the past weeks, a huge amount of FUD and negativity has formed, yet this did not push Bitcoin below $15,700. It can be concluded that, most likely, a large player accumulated right into the panicking crowd.
The nearest resistance levels are $17,600 and $18,400 — it remains to be seen how the price will break them. In an impulsive move, the chances of a return above $20,000 and a move beyond the $25,000 level increase.
But even now, many signs point to the price potentially easing into a breakout above $17,600 and higher.
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