Source: Forex Analysis
Now, Bitcoin is in the process of forming a defining model. If there are willing to sell the instrument at such favorable prices, this will lead to the formation of a correctional model. The purpose of the correction will be to return first to the range of the average move of the week and then possibly, to the month. The first target is at $7,800 per bitcoin. Closing trades above this mark will indicate a 90% chance of returning to it next week. Now, you need to find a pattern that will allow you to open a corrective sale or block purchases for those who are already in a long position.
It is important to understand that the current momentum is strong, therefore, it is necessary to follow simple rules for partially fixing sales and quickly moving positions to breakeven in order to work in the opposite direction.
An alternative model has a probability of less than 30% and continues to grow Bitcoin to the next psychological mark. Updating today’s high and closing trades above will indicate continued growth. This will force them to get rid of sales opened by the “false breakdown” pattern of yesterday’s extremum. A bargain shopping zone will start at $7,500, thus, the first sales fixation will also be required in the event of a depreciation.
Daily CZ – daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ – weekly control zone. The area formed by marks from the important futures market, which changes several times a year.
Monthly CZ – monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com