Vadim Shovkun, a hands-on trader and founder of the Crypto Shaman project, talks about the current situation in the market.

Since the previous review, the situation around bitcoin has not changed much, with the price going flat. Ethereum prices rose as expected. It is worth reviewing the status of these two entities.

bitcoin

Prices are stuck between $19,500 and $20,800. Price still fails to consolidate in the high volume zone (highlighted in yellow). A large number of trades do not show any reaction, which is an alarming signal.

Currently, bids have only added 17% of the local minimum. For comparison: In 2020, during the March breakdown, which also saw very high volumes, the asset grew 50% in nine days.

It’s worth paying attention to bitcoin’s weak position relative to the S&P 500 index. Since the start of the month, the indicator has dropped 12%, but that didn’t stop it from regaining more than half of the drop last week. . A classic weakness emerges: SPX is growing – the price of the first cryptocurrency remains unchanged, SPX is falling – digital gold prices are falling.

The longer Bitcoin stays in a tight circle, the higher the risk of falling from current values. On the higher timeframes (three-day and hourly), the downside momentum is very strong, so a drop in inertia is extremely likely. As the bounce is very weak, the price could approach the $17,000 level.

It is worth trading border-to-border as long as Bitcoin is within the range. Observations point to a more likely drop, so shorts are a priority.

Ethereum

Ethereum looks stronger than Bitcoin and is at the higher end of its range.

If the price enters the red zone and returns to current values, a classic pattern will appear. UT. This is a strong argument in favor of reduction.

Otherwise, the same arguments apply to the asset as to bitcoin. At the very least, once the price of digital gold begins to decline, Ethereum prices will follow.

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