Trader watches Bitcoin price slump to $23,600

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

The Bitcoin price range is narrowing. This suggests an imminent impulsive breakout from the range.

We have yet to breach the POC (point of control) of the global balance. Despite a strong reaction to a false breakout below the lower bound of $30,000, for the fourth week running we have failed to reach the upper boundary of the balance — at $41,000.

That implies only one thing: weakness on the buy side. The situation is further compounded by divergence in the cumulative delta. It indicates that market purchases are increasing, yet buyer aggression is restrained by a strong limit-sell wall.

Locally, we have already positioned the Value Area from last week in sells, i.e., we are below it. The sole support now is the range $32,600–$32,860, which is still not showing buy-side strength.

After settling below $32,600, we should expect only a move to $31,300 — the last line of defense for buyers. If it breaks, given the number of liquidations and stops, one can safely assert that the price will continue a strong move toward the $23,600 region.

However, despite positioning last week’s value zone as a selling area, a downward dynamic could develop via a test of last week’s POC — $33,900.

The most likely scenario is a move toward $31,300. It could unfold from current levels or via a test of $33,900. The negation of this short scenario would be a break above $34,700.

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