First of all we apologise as our Bitcoin analyst Samuel Rae won’t be able to publish his daily analysis up until Friday. So for the time being, I, Yashu Gola, will be replacing him to keep up the flow, and match his skills to provide you the most up-to-dated intraday trading reports.
And we do have quite a time to discuss the recent Bitcoin price action — flat and boring as one would say. Despite the last week’s impressive volatility, our dear digital currency is now standing in the midst of a bias conflict, giving us no attractive positions to get in and out of the market.
We had to pull our head out of the Bitcoin space to better understand the fundamentals behind Bitcoin’s flat action. And as we looked, we found that commodities like Crude Oil and Gold are also suffering from the same direction paralysis. The muted activities across these market are meanwhile blamed on tomorrow’s FOMC monetary policy announcement from the Federal Reserve.
The US central bank this week is planning to issue hawking guidances, policy statements and economic forecast ahead of its expected rate hike in December. The event is likely to strengthen US Dollar which, in turn, could have a short-term impact on Bitcoin price.
Putting our head back inside the digital currency space, we are back to trading in a choppy market yet again. Have a look the following chart:
As stated, we are still in the midst of a tight range, serving 609.77 as our in-term resistance and 600 as our psychological support. The range is visibly not good enough from an intrarange perspective, so it is recommended to follow a scalp breakout approach.
With that said, if price breaks above 609, it will put us long towards 612, our immediate upside target. A stop loss around 606 will keep our risks minimised.
Conversely, if price drops towards 600, we will be looking to get in short towards 594 fiat. Again, we would need a stop just a dollar above support in the event of a trend reversal.
Chart Credits: BitStamp, TradingView