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Forecasts of financial markets are the private opinion of their authors. The current analysis is not a guide to trading. ForkLog is not responsible for the results of the work that may occur when using the trading recommendations from the submitted reviews.
Vadim Shovkun, a practicing trader and founder of the Crypto Shaman project, talks about the current situation on the market.
Bitcoin remains in a narrow flat. Despite a predictable decline in the stock market and a very unstable economic situation, the first cryptocurrency does not lose ground and continues to cling to the $17,600 level without breaking it.
It makes no sense to analyze bitcoin on a timeframe below the daily one, since a narrow flat trend does not form anything interesting.
Data: Trading View.
Several interesting moments formed at once on the daily chart.
There is an increase in volumes in recent days, as well as a rounding and smooth increase in volumes over the past three months. The price pushes up to $17,600, a large amount of volume is generated, but there is no result. This is very bad for falling from current levels.
It is worth comparing the bars for 27 and 21 September. Both have a tail on top, the body of the candle for the later date is smaller, but the volume is larger. The volumes are growing, which means that a hidden buyer is most likely hiding in the bar on September 27th.
Another comparison of neighboring bars is on September 27 and 13. The spread is abnormally large, the volumes are high. But on the 27th the spread was tiny, the volumes were higher. Another sign of a buyer.
HL&HH Structure: Over the past week, a pronounced structure has formed in the micro sideways with rising lows and highs.
Studying the S&P 500 stock index, a double bottom pattern suggests itself. Comparing the volumes that were formed on previous bounces and the current ones, with a high degree of probability a rebound, if it happens, is quite insignificant.
Data: Trading View.
The stock market has updated the summer bottom, bitcoin is holding. Large volumes are generated on the first cryptocurrency, but there is no decrease – everything is absorbed by the buyer. The stock market may also bounce slightly in an attempt to form a double bottom.
While the price of bitcoin is in the range of $18,400-$20,400, expectations are flat. Reaching the upper limit of the range of $20,400 will give the market positive, the accumulated volume will be worked out to the area of $23,000. Reaching $18,400 will break the HL&HH structure and send the price to a new summer low.
But even if $23,000 is reached, it is expected to go under $17,600 in the next one to three weeks. This is supported by a volumeless rebound on the stock index, as well as sentiment analysis.
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