So we’re going to start off this afternoon’s bitcoin price analysis with a chart. The chart below shows the action we saw this morning throughout the session in Europe, with the framework we outlined overlaid.
As the chart shows, the range we had outlined was a close to five-dollar range with in term support at 411.5 and resistance at 416 flat. When placing our key levels, the decision to go for a tighter range meant we ignored the most recent swing low (close low at 410 flat and tail low at circa 408.5, in the hope that we’d get in on some more restricted volatility. As it turned out, we’d have probably been better going for the wider range, and using the close low as our support level. Price broke our in-place support shortly after lunch in Europe, and we got a nice run down towards our target. However, a couple of dollars short, price reversed and now trades within our earlier defined range – just short of our stop loss on the trade. We may get some luck and see a second reversal, but its looking unlikely as things stand.
Anyway – let’s look forward. As per our strategy rules, we won’t be entering any positions until this one terminates, be it via stop hit or target hit. For those not yet in a trade, however, here’s what to keep an eye on this evening. Take a quick look at the chart to get an idea of our key levels.
As the chart shows, we are looking at in term support at 410 flat and in term resistance ta 414.54. We’re about mid-range, so let’s look at the upside first/ A close above resistance will signal a long trade towards 420 flat. A stop on this one around current levels (circa 412) defines risk.
Looking short, a close below support will signal a downside entry towards 405 flat, with a stop at 411.5.
Charts courtesy of Trading View