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Financial market forecasts are the private opinions of their authors. The current analysis is not intended to be a guide to trading. ForkLog is not responsible for the results of work that may arise when using trading recommendations from the presented reviews.
Vadim Shovkun, a practicing trader and founder of the Crypto Shaman project, talks about the current market situation.
A month and a half has passed since the beginning of an almost recoilless correction that absorbed the last wave of growth. Is this the beginning of a bear market? Do buyers still have a chance? Let’s try to figure it out.
On the daily timeframe, you can see that the price is moving in a descending channel. After a serious dump, quotes began to squeeze in another downward channel, but narrower.
It is also important that after the dump the price is above the PoC of the previous growth wave. With the formation of a small downward channel, a small bullish divergence was formed in the RSI. The close of the last daily candlestick with a long tail from the bottom also indicates a manifestation of buyer’s power.
Let’s consider a local situation on a lower timeframe. On April 12, a pivot selling bar was formed, in the area of which the price has been moving for two weeks. The last rebound from the lower boundary occurred on impulse, on a high volume.
By the general nature of the sideways price movement, we can say about a weakening of the seller’s angle of attack and an increase in the buyer’s angle of attack. Consequently, the bulls are gaining strength.
After the current impulse, a slight pullback is likely, and then a move to the upper border of the range.
It is worth taking a look at the S&P 500 index. A very good squeeze is forming on the daily timeframe with the prospect of moving towards $ 4875. Given that Bitcoin and index correlation has resumed in the last couple of weeks, this could be a factor in the growth of digital gold.
It is important for Bitcoin to overcome the yellow mark of $ 50,757 in the near future, breaking the first of the bearish structures.
Bitcoin is most likely at its extreme. The rebound to the $ 59,000 minimum should occur within a few weeks. The dynamics of the S&P 500 index should not impede this movement.
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