Vadim Shovkun, a practicing trader and founder of the Crypto Shaman project, tells about the current market situation.
The price failed to consolidate above the mirror level of $21,100-$21,600. This range is the resistance and it is rather strong.
At the moment the price is testing the PoC of the whole range. Some reaction may be in favor of growth, but there are no signs of a buyer yet (no candlestick and volume formations).
On the weekly timeframe there is a bearish takeover. Also, an upward expansion pattern has been formed, which usually works downwards.
It is important to keep an eye on the lower boundary of the main accumulation of volumes on the profile.
If candlestick/volume formations appear in the blue rectangle marked on the chart (reaction to VAL, Value Area Low), the price may rise to the upper boundary of the monthly range (red resistance zone).
If there is no reaction in the blue box, price will go to demolish the two cascades marked with red lines.
