Anyone that caught this morning’s bitcoin price watch analysis will know that we were looking for a potential upside entry towards the key $4,000 level. This is a strong psychological level and one that we’ve been looking for a break of for a week or two now, ever since it gave away as key support when price fell from its peak pre-China ban.
Unfortunately, we didn’t really get what we were looking for. It’s not too big a deal – the action we got was action that we were able to take advantage of even though it was to the downside – but it’s a little bit disappointing nonetheless.
So as we head into the session tonight, we’re again looking for some upside action to negate the depreciation that we saw today. $4,000 isn’t going to come into play in the immediate near term, but we could easily get in and around that level if we get a bit of a boost.
Let’s get some levels in place with which we can try and jump in and out of the markets as and when things move. Take a quick look at the chart below before we get started so as to get an idea what’s on. It’s a one-minute candlestick chart and it’s got our key range overlaid in red and green.
As the chart shows, then, the range we have got in our sights for the session this evening comes in as defined by support to the downside at 3879 and resistance to the upside at 3917. If we see a close above resistance on the one-minute chart, we’ll jump in long towards an upside target of 3955. A stop at 3907 looks good. Looking the other way, if we see a close below support, we’ll be in short towards a target of 3840. A stop on this one at 3890 works.
Charts courtesy of Trading View