Trader weighs Bitcoin’s prospects for a reversal

The current market situation is explained by practising trader and founder of the project Crypto Mentors, Nikita Semov.

Bitcoin has approached a key support level at $31,175. What prospects does the asset have over the next few days?

Starting with the higher time frame — in this case, the daily chart. All major whale volumes are positioned to the downside. For this side, the primary priority is selling, and there are no signs of substantial buying at present.

It’s worth recalling that a test of the crucial horizontal density at $35,850 occurred long ago. From that level, by all norms, the asset should move down, and that is happening.

On the 4-hour chart, a pattern of testing the volume-core zone and the absence of demand at current price levels is evident. Its repetition across timeframes points to bear strength. This is corroborated by a liquidity pool below and by divergence in the cumulative delta, which has been noted in earlier analyses.

A local hold at the $31,175 level would open the door to a decline with a primary target at $28,700, from which buyer reaction should be monitored.

It is crucial to confirm that the consolidation pattern has formed. At present, we advise playing from the short side, ignoring long positions and even building medium-term investment portfolios, as liquidity could push the price lower. For a favourable entry, signs of demand must emerge from the market, which are currently lacking.

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