Nikita Semov, a practicing trader and founder of the Crypto Mentors project, talks about the current market situation.
Bitcoin has been in a downtrend in recent weeks, the global long structure is broken. We are also under the main traded volumes, which further indicates a shorting context.
The quotations stopped in the balance with the limits of $30,000-$42,500, having received the reaction from the POC of the buyer's volume array ($34,000). Statistically, the exit from such balances most often occurs in the direction of the trend.
However, there are a number of signs of buyer strength in the moment that keep bitcoin from falling below $30,000 anytime soon:
- An intact extremum at $30,000, which sets the stage for some reversal formation;
- The presence of large stopping volumes around $32,500, which have already pushed the price out significantly;
- Large unproductive selling at the $31,100 extremum, which suggests a trap for sellers and the presence of a strong limit buyer in the market.
Taking into account these factors, the possibility of correction to the strong sales level of $45,000 opens. From it we can expect the resumption of the downtrend to the level of $30,000 and lower.
Thus, the most promising points to join the downtrend will be the level of $45,000 or the level of $32,500 at a breakdown and a reverse test.
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