In this morning’s bitcoin price watch piece, we discussed the effect that the Christmas season has on financial assets. For those that missed it, we noted that due to a lack of trading volume, we might get a few spikes as we head into the New Year. Action has now matured throughout the session, and our predictions came in as expected. Price broke out to the upside on some pretty light volume, and we head into tonight’s Asian session having carved out fresh weekly highs today. So, with all this taken into consideration, what are we looking to trade this evening, and where has action in the bitcoin price focused our attention? Get a quick look at the chart to see our predefined range.
As the chart illustrates, tonight’s in term support sits at 427.55 (an intraday friction point) and resistance comes in at the aforementioned intraday highs of 433.16. These are the two levels to watch going forward.
Let’s address the upside first, in light of the overarching bullish momentum. If we get a break above in term resistance, a close above this level will put us in a long trade towards 440 flat. On this one, a stop loss somewhere in the region of current trading levels (circa 430 flat) will keep things tight from a risk management perspective.
Looking the other way, a close below in term support will put us short towards 421.97. Again a stop is necessary, as reinforced by the sharp action we seem to be getting lately (we don’t want to be caught on the wrong side of a shift like that we saw today!). Again, 430 flat looks like an attractive option, as this gives us a little more than two to one risk reward profile.
Happy trading and keep things tight!
As ever, charts courtesy of the great guys at Trading View