Bitcoin Price Watch; Downside Takes Charge

Well, we’ve finally gotten some volatility in the bitcoin price. Not exactly the type we’d hoped for from a long term perspective, but it’s given us an excuse to get in to a couple of positions overnight and that’s done enough to abate the patience issues we discussed in yesterday morning bitcoin price watch analysis. How things will play out today remains to be seen, but with the bitcoin price having wound up in a consolidatory phase for nearly a full week (if we include the sideways action over the weekend) it wouldn’t be an unreasonable assumption to suggest that the move to the downside we saw last night is juts the beginning of an overarching bearish reversal. Of course, our intraday strategy takes both the upside and the downside into account, so even if we get a near term upside shift, we should be able to take advantage of it. Assuming, that is, the shift is sustained. That’s the key to these breakout trades –  it doesn’t really matter what direction the price of the underlying asset moves, so long as it moves enough to reach our target

So, with the rambling out of the way, what are we looking at for today’s session? Take a quick look at the chart to get an idea of what’s on.

Screen Shot 2016-03-03 at 10.17.02

So, as the chart shows, we’ve got in term support at 415.84 (overnight lows) and in term resistance at 423.71. We’re just shy of resistance as we speak, so let’s address the upside first. Usual parameters – a close above will put us long towards an initial target of 434 flat. Stop at 420 defines risk.

Looking the other way, a close below support signals a short entry towards 406 flat. A stop on this one somewhere around 418 keeps things tight to the upside.

Charts courtesy of Trading View

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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.