Only yesterday we were discussing the immense possibility of a breakout above 900 fiat. And this morning, during the Asian session, we saw just that. The latest rally has proven that it is now better to hold on to your Bitcoins for a while, in order to benefit from the prevailing upside momentum. Most of the volume is currently appearing from China — yes, who else could it be — following Yuan’s devaluation and capital control reports. Italy and India, on the other hand, are adding to the Bitcoin hype following their economic issues and demonetisation drive, respectively.
However, as our chief Bitcoin analyst Samuel Rae had suggested before, there could be a slight possibility of low volume during the Christmas breaks. While this effect is not visible for now, let’s not ignore it outright.
Anyway, we are now in a profitable game. We’re heading up, and thus creating enough good opportunities for holiday profit. So, with that in mind, let’s take a look at what happened today, and try to predict the price action we might see in the following chart ahead of this week’s closure.
So, as the chart shows, we now have resistance to the upside at 926 fiat, and support to the downside is at 869 fiat. This is a very wide range, thanks to the prevailing volatility we have experienced. But as Bitcoin price is quite near the resistance level, we would prefer to apply our breakout strategy to compliment the prevailing upside action.
That bring said, we will look to get in long towards an immediate upside target near 950 fiat. A stop at 919 fiat looks good.
Looking south, if price tends to undergo bearish correction, we will switch to intrarange and put a short towards 909 fiat.
Have a profitable day!
Charts courtesy of SimpleFX