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Vadim Shovkun, a practicing trader and founder of the Crypto Shaman project, tells about the current situation on the market.
Bitcoin has been growing from $41,000 for three weeks now. The movement looks quite confident, the quotes have overcome the important mark of $ 52,888 on the impulse. But the price has increased by 40% with almost no rollbacks and it is necessary to take into account some weak patterns that have already begun to form.
A double divergence has been formed on the four-hour and eight-hour timeframes. There are also noticeable drops in trading volumes at each new local price maximum. In the area of $52,888, two levels of stops were formed, which will certainly be removed in the event of a price decrease with the unchanged behavior of the RSI indicator.
There are two areas of interest for buyers. $50,700-$51,700 – the price can impulsively drop to this range, and then return to the previous value, collecting stops. $48,300-$49,300 — this zone is more reliable in terms of a large volume of concentrated horizontal volume, as well as a clear and understandable stop at $46,886.
At the moment, the decline in quotations should be considered in the context of a growth correction and it will work correctly mainly from long.
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