Bitcoin. Consolidation before growth


In the publication dated May 22, we noted that bitcoin is undergoing a medium-term correction of the long-term trend with a goal at the level of 40026 and the goals of this correction have been realized, and with excess. Moreover, the market also tested the lower limits of the channels of the long-term (support level 34972) and the main (support level 37148) trends, forming a new low at the level of 29927, which in the framework of the SWT method is interpreted as technical support for the short-term trend. These circumstances, since all the technical goals for volatility have been achieved, allowed us to assume that there is nowhere to fall further, and growth is expected from the support cluster zone 29927-34972-37148-40026. However, at the time of publication on May 22, there were no signs of an upward turn yet.

In the publication dated May 27, it was noted that the support of 29927 stood, the movement went above this level, and signs of growth began to form, first according to the trend of the weekly cycle, and then according to the short-term trend, which gave grounds to start long-term investment purchases of bitcoin.

At the moment, the situation remains almost the same, without significant changes.

The main trend is upward, the long—term downward medium-term correction continues, but with signs of recovery in growth – see the following chart.

The wave of the medium-term trend begins attempts to move up, shown by the indicator marked with an arrow in the lower window of the chart. At the current moment, the market is consolidating approximately in the center of the weekly trend channel 29927-43402, the movement is lateral, but this already gives grounds for purchases under the assumption that the correction is coming to an end.

The volatility channel of the weekly cycle trend (the red channel on the H1 chart) narrows, quotes keep moving inside the channel. The strategic direction of the market movement remains the same — growth from the current price level, and investors can continue buying from the current level in the support cluster zone 29927-34972-37148-40026. With tactics for speculators, especially short-term and high-risk ones, options are possible. Bitcoin is bitcoin, and, in particular, before the start of a new growth cycle, a downside is possible to unload the market from accumulated short-term positions with high risks. And large volumes of purchases with leverage can lead to problems with holding a position. Good luck!

Resistance levels: 36799, 43402, 50804, 64810, 67959, 71361, 87926.

Support levels: 40026, 37148, 35715, 34972, 29927.