So that is another week pretty much done in our bitcoin price trading efforts and it has been a pretty volatile one. When price started to appreciate early on in the week, it looked as though we might be in for a longer-term recovery in the space. However, as the week matured, news out of China continued to put down side pressure on price and bitcoin hasn’t really been able to recover overnight on Thursday. As such, we are heading into the Friday morning session in a far weaker position than was the case just last night.
It isn’t too much of a problem from an intraday perspective – there is plenty of opportunity to jump in and out of the markets when we have this sort of volatile action – but it does make things a little less pleasant. Anyway, about that. Let’s get some levels in place that we can use to take advantage of any volatility during the session today.
As ever, take a quick look at the chart below before we get started so as to get an idea of where things stand. It is a one-minute candlestick chart and it has our range overlaid in red.
As the chart shows, then, the range we are looking at for the session today comes in as defined support to the downside at 3590 and resistance to the upside at 3629.
If we get a break above resistance, we will look to a close above that level to signal an upside trade towards an immediate target of 3660. A stop loss on the position somewhere in the region of 3615 will ensure we are taken out of the trade should things turn against us.
Looking the other way, a close below support will have us in short towards a target of 3540. A stop was on this one at 3605 looks good.
Charts courtesy of Trading View