Let’s take a look at what happened this week.
Bitcoin is still in consolidation. For 56 days the price has been trading in the range of 40k-30k $ per bitcoin.
How long will the consolidation take? No one can predict the future, but most likely bitcoin can be traded in this range until the end of the summer and it is possible to get out of this consolidation only in the autumn.
For the last six months, the chart shows a downward structure with lower highs and lower lows, which is not a good signal for continued growth. In order for the situation on the bitcoin chart to change for the better, it needs to try to make a series of higher highs and lows. If that happens, BTC will have a chance to continue its upward movement and come out of this consolidation upwards.
Let’s look at a few options for how the price can come out of the consolidation and when is the best time to buy.
Consolidation 2018, which lasted about 130 days. The chart shows the big value area, and how the price started to push up to the upper boundary of that range. After that, we see a massive exit and an increase of more than 200%.
Another example is the massive Value area, from which the price fell sharply by 50% and there was a very large increase in volume.
If you see a similar situation on the Bitcoin chart, this will be the best opportunity to buy. At that time, this was the largest amount of recorded losses, 1.38 billion dollars.
Local picture on the bitcoin chart
Locally, many traders paid attention to this trend line. And expected a reversal of the price after its breakout. But this time it was a trap! The price quickly returned below the trend line, and adjusted by 5%.
One of the reasons for this fall was that a big player sold out 350 bitcoins, moreover, this data is only from the Binance exchange (on the spot market). The total number was much higher.
At the moment, the price goes from volume to volume, before that, when the price approached the mark of 32,100, the big player bought 1,800 bitcoins, which pushed the price by 7%.
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In this chart, you can see in more detail how the price reacted to this volume.
Until a large amount of capital appears on the market, a seller or buyer who can turn the price in its direction, the price of bitcoin will continue to go from volume to volume.
Let’s look at some local scenarios. In which case to buy and in which case to sell:
— In the event of a rapid and strong fall, btc will collect stop losses below the minimum of $ 28,800 and greatly increase the volume — this will be a good opportunity to buy.
— Otherwise, if the price begins to fall slowly and push to the lower limit of this value area, it is likely that Bitcoin will continue to fall.
Watch a lesson on how to trade break down pattern:
Ethereum (ETH) Update!
When is it better to buy Ethereum?
a) The first option to buy if ETH quickly updates the key level of $1733, with a strong increase in volume. This will mean that the price got enough liquidity and there will be a strong pullback, last time after such a fall the price went up by 40%.
b) If Bitcoin will approach the mark of 30k $, it is very likely that Ethereum will also repeat the movement of the main cryptocurrency, and without a strong buyer the price may fall.
Binance Coin (BNB), what will happen after the burning of coins?
In the coming days, Binance coin is going to burn coins, this is fundamentally good news, because with declining supply, demand increases.
Let’s look at how price has historically reacted to this process.
Statistically, after combustion, the price decreased more times than increased, 9 out of 13 burns the price ended in a fall, the average rate of decline was about 15%, and only 4 times the price increased.
This time is likely to be no exception, but the price will also respond to this burning.
Now let’s look at the technical situation of the BNB.
Since all altcoins correlate to the movement of bitcoin, Binance also has similar scenarios:
— The first scenario is a rapid decline, the update of the minimums, a significant increase in volume, in this case it will be a good opportunity to buy.
— Another option is a gradual reduction to the lower limit of consolidation, trading and squeezing, which is more likely to bring the price even lower.