Bitcoin Price Watch; Recovery Today?

The bitcoin price lost strength pre-market on Tuesday, but is it just a temporary decline?

Yesterday we mentioned that, as a response to the tight, sideways action we had seen throughout the afternoon session in the bitcoin price, we would tighten up our range but set up against a possible sharp move on the back f price breakouts. As things turned out, we got just this move. Unfortunately, from a long term holding perspective, the move didn’t come in the direction we’d hoped. From action yesterday morning it was looking more likely that we would see 500 flat before we broke 400 again – now, not so sure. Having said this, from an intraday perspective and for our short term strategy, the move was a good one. We entered short on a break of support and almost instantly took out our downside target for a small, but solid, scalp gain.

Today is a fresh session, and with the big move out of the way this morning, there’s every chance that we could get a consolidatory day as markets take stock of the latest action. Of course, many of the traditional elements of the financial asset markets don’t translate to bitcoin, so we also need to be prepared for a continuation of this action. With this in mind, here are the levels we are watching for today’s session, if we get some volatility. Take a quick look at the chart to get an idea of what’s on.

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As the chart shows, today’s range is defined as in term support at the day’s swing low – 416.39 – and in term resistance at a level through which we just broke, but has served as solid support/resistance in the past – 426 flat.

We’ll just be focusing on breakout today, so look out for a close above in term support to validate a bullish entry towards 432.24, with a stop at 424 defining risk.

To the downside, a close below in term support will set us up short towards 410 initially. A stop on this one at 418 protects the downside potential.

Charts courtesy of Trading View

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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.