Bitcoin is trading around $23,300, exactly as it was seven days ago. The valuation of the uptrend is very positive, with a strength of 11 out of 20. After the sudden momentum from $16,000 to almost $24,000, the asset appears to have found a a fairly solid foothold at $23,000.
General situation
The trend is very strong, it has already broken two of the three targets reported in recent weeks.
Supports:
Target:
In the graph below, we used a point analysis methodology based on linear regression lines. In this video I explain what it is.
The Control Point or POC (Point Of Control) indicates the price line with the maximum volume: it therefore marks the level that the market considers the fair value, or adjusted value, of an asset in the period under consideration. The POC of Bitcoin is currently positioned at $20,249: this value has decreased in the last week, bringing the Bitcoin prize in line with the price volume. We see support at $20,200.
But growth and subsequent stabilization is not yet supported by volumes: this means that the price is bound to move from $23,000.
Bitcoin is also perfectly respecting seasonality. This may drive BTC higher in late May. Possible laterality/descent until the end of February, followed by an ascent until the end of April:
This is my proprietary indicator, available free of charge to anyone who would like to download and install it on TradingView. All my analyzes are done with the software provided by TradingView.
Volumetric analysis
The volumetric order flow analysis shows a huge amount of buy limit orders, therefore below the current price. In particular:
- Between $23,000 and $33,000: 2,300 BTC for sale;
- Between $23,000 and $13,000: 6,200 BTC in purchase.
Basically, order flow is a big floor where orders are sold at a certain price: there is no way for an asset to move where there are no orders. Since our last analysis, orders have changed very little.
But compared to a few months ago, we actually notice some changes. At the time, there were only orders below the current price, while now we also see interesting orders at $25,000 and $29,000.
Prices to watch:
Sentiment
Let’s take a look at the market sentiment of the major cryptocurrencies:
Significant increase in the market cap, with a final stabilization:
Mirko Castignani he is a trader, entrepreneur and financial trainer. Starting from 2017 he collaborates, as a teacher, with trading companies of the caliber of Avatrade, WeBank and SaxoBank, Directa SIM, iBroker. He is also a guest for American financial markets on CNBC, as well as a member of SIAT, AIEF.
In 2013 he founded, together with Andrea Vaturi, Advantage Unfair: a financial training company that still collaborates with leading Italian credit institutions and Spanish brokers. Today he is also a member of the board of directors of ANPIB, the National Association of Private & Investment Bankers.
He regularly posts market updates on his Telegram channel.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading involves risk, so you should do your research before making a decision.
