Nanny Ventures analyst Maxim Lenets tells about the current market situation .
Last week, the price declined to first support in the $ 47,500- $ 48,500 range (chart below). The weekly candle closed at $ 49,066, all the red candles at the end of the week bought back well, forming large shadows.
The current week started off favorably for buyers, Monday closed above exponential averages on good volumes. This speaks in favor of re-testing the psychological mark of $ 60,000. The news background also contributes to this scenario – the Fed kept the base rate at 0-0.25%.
The Bitcoin Dominance Index has broken through the psychologically important level of 50%. Now we are observing whether he will be able to gain a foothold under it, or still he will be able to recover.
The price needs to be held above $ 52,500- $ 51,000 to maintain the bullish scenario for the coming days, otherwise a retest of the support level is possible.
Cancellation of the long scenario will be a breakout of the support zone on large volumes (chart below). But this is the likelihood of such a scenario is lower than that of the sideways.
An interesting pattern is present on the hourly and 4-hour charts. On the hourly, the price is confidently holding above the moving averages; at 4 o’clock probable short squeeze, falsely broke through EMA-200 and failed to gain a foothold. Note the huge volume on the sentry during the squeeze.
I would like to see a trade in the $ 53,500- $ 55,500 range before going up. If we manage to break through and gain a foothold locally above $ 58,000, this will open the way for $ 60,000.
Overall, the bullish scenario continues and optimism is returning after a nervous fall last week.