It’s Wednesday morning and what a 24 hours we’ve had with the bitcoin price. In last night’s analysis we set up some levels that we thought might be relevant as far as executing on a short term breakout strategy was concerned and left ahead of the US evening session with a pretty bullish outlook on what was to come.
We left our desks, had our buy orders in place and shut down for the evening.
Fast forward 24 hours and everything is moving.
Jamie Dimon, the guy at the helm of JP Morgan, has said that bitcoin is doomed to failure. This is wrong, of course, but guys like him have a pretty big swing in the financial world and many of those holding have picked up on his sentiment and run for the exit.
Price is down below $4,000 for the first time in a while and it’s looking like we may see a bit more weakness before things bottom out.
We’ve got to remember these are temporary blips and the opinion of one man that has gotten it wrong so many times before shouldn’t sway overarching sentiment.
So how does all this play into our intraday strategy today?
Well, it means we’re almost certainly in for some volatility.
Take a look at the chart below before we get started so as to get an idea what’s on and where things stand right now.
As the chart shows, the range we are using for the session tonight is defined by support to the downside at 3889 and resistance to the upside at 3971. If we see price break up above resistance, we will enter long on a close above that level towards a target of 4030. Conversely, a close below support will have us in short towards a downside target of 3850.
Let’s see what happens.
Charts courtesy of Trading View