Bitcoin continues to grow. Layout direction and type of movement on the trends in the following:
— the main trend — rising;
long — term trend is in downward correction;
— medium term trend is in upward correction;
short — term trend — rising;
— local trend (weekly cycle) — in the descending correction;
— daily trend — upside correction.
The downward correction of local trend is determined the dynamics of the market at the end of the week, but on Sunday evening, quotes resumed growth, which aims at $12 743,29 currently defined short-term uptrend. Although the correction of the local trend continues, but the market regains upward movement by a daily trend, which blocks the correction of the trend is local, and in the coming days, maybe hours the ascendant will be the medium-term trend with a target at $14 065,51.
At the time of printing charts the market is trading in the updated a key channel local trend $8961,85-$9916,80 formed as a result of updating local maximum at the end of last week.
Breakthrough the upper boundary of the key channel will continue short-term growth with a target of $12 743,29 with the prospect of continued upward movement in the medium-term trend with a target at $14 065,51. Do not confuse the exact numbers of target levels is the result of the calculation of the mathematical expectation of objectives. The real targets are the spread determined by the variance due to the random component of market volatility.
The fit of the lower border of the key channel is unlikely. This option and the goal for him to consider is that we will not.
Resistance levels: 9916.80, 12743.29, 14065.51, 19421.20.
Support levels: 9522.60, 9403.09, 8961.85, 8655.41, 5944.82.
Trading strategy and tactics
Tactics long-term investment “buy and hold” with unclear goals.
— medium — hold long positions with the target in the area of resistance is around $14 065,51 and with a stop for support $8655,41 and connected to the volume on the pullbacks of the local trend and the breakout of the upper boundary of the key channel;
— short — term- hold long positions with a target at the resistance level of $12 743,29 and with a stop for support $8655,41 and connected to the volume on pullbacks intraday.
Tighter stops when buying bitcoin posed a risk of unwarranted closing position with a loss, as the thin market emissions are down in the size of the daily market volatility , which clearly shows the lower graph.
Market analysis made on the basis of the SWT-method
Author: Nicholas Skrigan, Ph. D., project analyst coinspot