That’s another session done out of Europe in our bitcoin price trading efforts and what else can we say other than what a day! Things are moving incredibly fast right now and it’s getting tough to stay on top of the market from a fundamental perspective. Price is being pushed all over the place by a variety of fundamental inputs, the vast majority of which are weighing down on sentiment, and this has translated to the breaking of a number of key support levels over the past few hours. 4000 went, then 3900, then 3800 and, fortunately, it looks as though 3700 is set to hold – but we can say this for certain, of course.
What we can do is ensure that we are set up to jump in and out of the markets as and when the volatility that is dominating the session comes back into force. For anybody looking for a way to hedge the dip that is causing long-term holding value declines, a short entry on a break is as good a method as any.
So, let’s get some levels in place and push forward into the US afternoon session. As ever, take a quick look at the chart below before we get started source to get an idea of what is on where things stand right now. It is a one-minute candlestick chart and it has our range of overlaid in red.
As the chart shows, the range we are looking at this evening is defined by support to the downside at 3806 and resistance to the upside at 3869. We are going to stick with our breakout strategy for now, so we will look for a close above resistance to get us in long towards a target of 3900. Conversely, a close below support will have us in short towards a downside target 3760.
Charts courtesy of Trading View