A practicing trader and founder of the Crypto Shaman project Crypto Shaman Vadim Shovkun.
Bitcoin continues to move in a tight range. Should we still expect a decline, or has the long-awaited rally begun? Let’s try to figure it out.
S&P 500
As usual, we begin with an analysis of the stock market.
The S&P 500 index failed to push above the key high near $4,200. Moreover, on the daily chart a rounded-top pattern is forming, pointing to a likelihood of lower prices.
Bitcoin
The leading cryptocurrency remains within an uptrend channel. Yesterday’s weak attempt to move higher failed to push to a new local high.
The latest high update was completely unimpressive. This could signal waning buying pressure.
On the eight-hour time frame, there is also evidence of seller aggression (a spike in trading activity). The morning engulfing of yesterday’s rally occurred on higher volumes, exceeding yesterday’s levels.
The expectations remain for a pullback. At minimum, the price should reach the lower boundary of the uptrend channel. However, it is more likely that quotes will soon reach the $20,000 level.
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