A practicing trader and founder of the Crypto Mentors project, Nikita Semov, explains the current market situation.
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One of the key and most pressing questions facing crypto investors and traders today is: \”Should we expect further declines in Bitcoin, or will the leading cryptocurrency in the near term delight us with an upward rally?\”
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To answer this question, we outline the broader picture and identify the most likely scenario for movement over the coming month.
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Bitcoin is in a ‘fair-value’ zone bounded by $49,300-$42,900. These levels are not based on price extremes, as is common in classical technical analysis, but on the distribution of horizontal volume.
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In any range there is a strict rule of moving from boundary to boundary. Therefore, as long as the price remains within the range, the most likely scenario, from the standpoint of mathematical expectation, is to consider continued rotations within the defined balance. Since the price is at the upper boundary, we expect a decline to $42,900.
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However, moves within the balance from level to level do not contradict the overall global uptrend, which remains in place to this day.
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The primary expectation for Bitcoin is to establish a range within the designated price corridor, followed by an upside breakout and a new high at $69,200 within the coming months.
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