The downward movement of the current week allowed to reach the lower limit of the monthly range of June, which led to the emergence of large demand. If the level of $7500 will be held, then the upward movement will continue and the first target will be the May low of $9000. This is also where the last stop of growth occurred. It is important to understand that the upward impulse is a strong medium-term structure. Breaking of which will require the formation of a false breakdown of the older period.
The first resistance in the way of growth will be the level of $8000. If this mark Bitcoin overcomes and consolidates higher in one of the trading sessions, the absorption of the last fall will be a matter of time.
An alternative model will be developed if the course fails to consolidate above $8,000 and starts to decline. In this case, the formation of the accumulation zone will continue. The lower limit is now at $7500. Fixation below this mark will indicate the end of the upward impulse and the transition to the bearish phase, where there will be most likely be a return to $3500.
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