It’s been a few days since we last looked at the bitcoin price from the five-minute perspective (this author had a bit of time of for Christmas) and price has moved a lot across the period. We said heading into December that things might end up being a little slow – that the low(ish) volume caused by the market inactivity across the wider and more traditional financial assets may filter in to the crypto space. As it turns out, this hasn’t been the case. Things have been pretty volatile, and there’s not been any real dip in volume. You could argue this is a result of the Asian (and specifically, Chinese) participation rates, but let’s not get in to that now. For now, instead, let’s look at a chart and see if we can define some levels with which to move forward.
As ever, the chart below is a five minute candlestick chart, and it’s got our range overlaid. Take a look at that before we kick things off to get an idea of what’s on, and where price stands after its end of year run up.
As the chart shows, price is currently trading somewhere in the region of 990, and the range we are looking at is defined by 985 to the downside, which serves as support, and 994 to the upside, which gives us our resistance for the morning European session. We’re going to go with breakout today, and leave our intrarange at the door. Specifically, if we see price drop through support, we will look for a close below that level to get us in short towards an immediate downside target of 977. A stop at 987 works to define risk. If price closes above resistance, we’ll be in long towards 1000 flat. Crazy that we’ve gotten here so soon, but there we go.
Charts courtesy of SimpleFX