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The trader told what to expect from the bitcoin price after the correction


Disclaimer

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.

Trader Ilya Meshcheryakov talks about the current situation on the market.

The cryptocurrency market started the week positively. But, despite the growth of about 10% per day, it is rather far from recovery. The bitcoin dominance index is held at about 50%, and the asset value itself at the time of writing is $ 53,000.

From the point of view of the medium-term perspective, we are observing the critical point of the downtrend. The three waves mentioned in the previous review and a move below $ 50,000 are enough to drive out a lot of open long interest.

At the moment, we saw a rebound after the formation of a local low – the signal is twofold, it can speak of both a short squeeze and the beginning of a medium-term uptrend.

Global flat zone with horizontal volume and support / resistance levels on Bitcoin. Bitstamp Hourly BTC / USD Chart by TradingView.

The downward movement itself went straight to the liquidation of the leverage 1:10 in the long from the lower border of the current flat (indicated on the chart above in blue). A sign of the mood only for a “slight fright”, and not a global drain of coins.

The local picture implies important levels of $ 53,260 and the previously broken $ 51,260 – it is from them that one should expect sellers’ support for further growth. Resistance will be $ 54,650 and $ 56,000 – rollbacks are expected from them if the growth continues.

Support / resistance levels, as well as the buyer’s support area (green). Bitstamp 5-minute BTC / USD chart from TradingView.

Short-term excitement is unlikely to allow Bitcoin to recover in a couple of days. The current long reversals of traders provoke local falls, so leverage should be used with great care.

The long-term outlook looks positive so far, but clearly implies the preservation of fiat for a potential addition on deeper drawdowns.

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Fidenge Pecold

My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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