BTC moves within a range of $8 200–10 100
As the market confirmed the upper flat border on the 18th of May, on Monday night the BTC rate continued to decline to the lower one. Under these conditions, the most likely scenario is the continuation of accumulation within the flat movement, 8848 Invest’s analyst Mark Sorokin believes.
Last week, the main scenario for BTC was the flat trend formation with borders at $8 200–10 100. The BTC price of BTC keeps within this accumulation, but last week it wasn’t quite clear this is exactly the flat. Current market observations confirm this.
‘The reason for the Monday’s night BTC decline to $9 000 was the nature of the price movement from the flat’s upper border to the lower one. Reaching the expected upper flat border at $9 900–10 000, the BTC price confirmed it and bounced down. Now BTC continues to decline towards the lower flat range border to the level of $8 000,’ the expert notes.
At the same time, according to him, the main scenario for BTC is to achieve $8 000, preferably with a false border breakthrough, and return to the accumulation range. Further, the price will return to the upward movement to $10 000. The scenario of updating the range of $10 500–14 000 is relevant still. But, since the BTC price is already going to flat, you need to wait for the exit out of this accumulation, consolidation beyond its borders, and only after it will be possible to assess the BTC rate movement prospects.
‘There is the capital flow at the market. Serious money accumulates at the top, indicating the irrelevance of the lower support level. Big players close their longs, the probability of the BTC falling to $5 000 is keeping. The distribution up to$5 500 is becoming increasingly relevant for BTC. This scenario can be called one of the most likely in the medium term,’ Mark Sorokin emphasizes.
The key performance goes inside this accumulation, the flat trend boundaries at $8 200–10 100. While the BTC price keeps within this accumulation, it’s difficult to make further forecasts, since their probability remains 50 to 50. The price can go either up or down. The most probable scenario is the false break of $8 000, return to the flat, and continued accumulation.
‘Another scenario is the volume distribution, fall to $5 500 or even lower, complete momentum distribution decline to $4 000 and moving higher to the level of $14 000 after, for example, a false breaking through of $8 000,’ the expert notes.
The large accumulations formation goes at the alternative coin market. Key altcoins, ETH, and LTC couldn’t overcome the current resistance levels.
‘They make us state the fact of the further formation of the new accumulations and new wide range flat,’ the expert summarizes.