So there it goes, another week down, and what an interesting week it’s been. Well, interesting maybe isn’t the right word. Perhaps frustrating is a little more apt as a description. The bitcoin price was basically flat for a few days at the beginning of the week, and we started to think that maybe there was a long stretch of sub-1000 action ahead of us. Price didn’t look like it was going to break, and volume didn’t look like it could support a break even if price decided to, and out intraday strategy was looking decidedly ineffective. We managed to get in and out on a couple of quick turnaround breakout trades. We also managed to get ourselves stopped out on a couple of occasions. We went into this morning’s session with an albeit narrow net gain on the week’s action. But that wasn’t all. We also went into it with a bitcoin price above 1,000, and looking as though it was set to stay there ahead of the weekend. That’s important from a long term sentiment perspective, and long term sentiment is – by proxy – important for near term volatility.
So, the European session has now drawn to a close, and we’re looking at the US afternoon to close out the week.
Let’s set up some levels to go at, and see if we can end the week on a high. Take a quick look at the chart below to get an idea of what’s on.
As the chart shows, the range that we are focusing on this morning is defined by support to the downside at 1028, and resistance to the upside at 1039.
If we get a break through support, we will look for a close below that level to put us short towards 1020 flat. Conversely, a close above resistance will get us in long towards 1048.
Have a good weekend!
Charts courtesy of SimpleFX