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The current market situation is described by trader Ilya Meshcheryakov.
The end of last week was very successful for the cryptovoltaic market – as I wrote in the previous review, the goals of the decline in figure have already been achieved, which means that in order to continue the upward trend, the bitcoin had to turn right from $16 300.
Fortunately for the bulls, this happened and the BTC is already trading above $18,800 with a stable domination index of 62%.
The outlook remains positive as the 17% correction has reduced overbought and knocked out much of the open interest in the long run without causing unnecessary panic.
The end of the correction is also predictable, with the formation of a triangle with an upward impulse exit. A good correction in terms of structure is in most cases considered a positive signal for further trend development.
A triangle at BTC with a subsequent upward impulse, as well as the current trend line with the assumed stop zone (red). Five-minute BTC/USDT chart from TradingView.
The current BTC growth is formed into an upward price channel with a clear trend line – such movements are not only beautiful, but also dangerous. This is due to the large number of buyers placing their stop orders below the trend line.
Pay attention to the $18,200-$18,400 zone – this is where SL buyers in the current short-term trend will most often be concentrated, so there is a high probability of a rollback to these values in the near future.
The longer term prospects indicate that the global maximum will be renewed as early as this year – this is strategically important for attracting new capital from investors with more available funds before and after the holidays.
I have already written in previous reviews that it is unlikely that the scale of this transition will be significant as it is very costly and the result of reaching the $25,000 or $30,000 mark will be approximately the same (from a fundamental point of view).
BTC’s levels of support and resistance in the medium term. BTC/USDT hour chart from TradingView.
Important levels in the case of a short term downtrend scenario are $18,070, $17,360 and $16,430, which would be good as entrance prices to the medium term long range.
The market thus showed us a structurally good correction, which ensured that growth resumed fairly quickly.
The championship will be taken by BTC, for which they will try to gather all forces to renew the historic high, and then begin to fix profits in altokoin, giving them a new impetus for growth.