In yesterday’s evening bitcoin price analysis, we noted that if price managed to pull off a sustained run to the upside, that we might see a reaching (or even a breaking) of 600. We concurrently noted that this was a key psychological resistance level, and that – as a result – even if we did break it, the likelihood of price maintaining a floor above the 600 level was slim. Action has now matured overnight, so let’s take a look at how our forecast played out against real time movement. The chart below is a 15-minute time frame candlestick chart showing the last 24 hours’ worth of action. It details overnight movement, as well as showing the key levels (by way of highlight) that we will be focusing on for today’s session. As ever, get a quick look at this chart before we continue.
So, as the chart shows, action overnight rose to just shy of 600, topping out at around 597 and then correcting back down to circa 590 flat. Since this correction, price has traded pretty much sideways, and we currently trade around 589 – midrange (weighted towards the lower end) of today’s range in focus. This range for today is defined by support to the downside at 586 and resistance to the upside at 597.
We are going to go in with our breakout strategy primarily today. With this said, an intrarange approach is also valid. From a breakout perspective, if price breaks above resistance we will enter long towards an initial upside target of 605. A stop loss on this one somewhere in the region of 595 defines risk. Looking the other way, if price breaks below support, we will look to enter a short position towards a downside target of 580. We’ll place a stop loss at 588 to keep things tight and ensure we are taken out of the trade in the event of a bias reversal.
Charts courtesy of SimpleFX