Well, we were hoping the bitcoin price would run today and that we would see a continuation of the bullish action that we saw over the last few days. For a short period after we published our first analysis of the day today, we saw a bit of sideways trading, and price seemed to consolidate a little bit. We didn’t have to wait long to get the momentum we were looking for, however. As the markets opened in the US, price soared through our predefined resistance level, and we got a sustained run up to where we currently trade just shy of the 400 flat level.
Talk about runs.
Tonight, then, we’re going to go into the markets with a similar frame of mind as we did this morning – one of apprehensive optimism. When price runs like this, it’s not unusual to see a sharp turnaround as markets correct in response to the shorter term operators pulling profits off the table. If we do see this, we’ll probably be looking to 1350 to act as longer term support on the position.
Anyway, that’s not overly relevant for now. We’re going to set up some short term levels and use these to go at action as and when (and however) it moves.
Take a look at the chart before we get going. As usual, we’re using the five-minute timeframe, and our range is overlaid on price in green.
As the chart shows our range is defined by support to the downside at 1381 and resistance to the upside at 1391. If we can get a break above resistance, we’ll be looking to get in long on a close towards an upside target of 1400 flat. It’s a tight one, so stop loss at 1388.
Looking short, a close below support will signal entry towards 1370.
Let’s see what happens.
Charts courtesy of TradingView