Bitcoin Price Watch; Let’s get some upside!

The Monday overnight session brought us pretty much exactly the action we expected in the bitcoin price – minus any real volatility. Price traded sideways within our range to break above and subsequently fall below the 400 flat level – to-ing and fro-ing around the psychologically significant barrier. As part of yesterday’s analysis, we noted that because of the significance of 400, and because it resided bang in the middle of our predefined range, we would avoid any intrarange entries. This is because it would likely have been difficult for price to bounce from either of the two key levels with enough sustained momentum to break through 400 and maintain a directional bias, before correcting. This turned out to be a smart move, given overnight action, and is something we will maintain today (more on this shortly).

It’s been a relatively quiet week so far from a fundamental perspective, so we’re looking at things from a purely technical viewpoint for the session (Europe, morning) today. Further, the US markets are now back in action (it was President’s Day yesterday and volume was low as a result) so we should see a return to standard volume, and hopefully, some volume driven movement.

So, on this note, what are the levels we are keeping an eye on, and where can we get in the markets to draw a profit on any volatility? Take a quick look at the chart to get an idea.

Screen Shot 2016-02-16 at 10.12.20

As the chart shows, the levels we are looking at today remain pretty much as they were yesterday afternoon. If action doesn’t break range the range remains valid, so that’s what we’re working with now. In term support at 396 and resistance at 404.

If we break above resistance, a close will put us long towards an immediate upside target of 410. Stop at 402 defines risk.

A close below support will have us looking short towards 390 flat, with a stop at 398 protecting our upside.

Charts courtesy of Trading View

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Samuel Rae

Samuel is a currency trader, author and contributor to a number of the leading forex market publications including Futures Magazine, FX Trader Magazine and Spreadbet Magazine. He is a an avid bitcoin enthusiast with a real interest in how cryptocurrencies are likely to affect global economics in the future.