So we’re closing out on the European session today and it’s time to take the second of our twice daily looks at how action in the bitcoin price played out and how we can use it to formulate some sort of strategy that we can use to try and draw a profit from the market this evening.
We’ve been hit with a substantial amount of negative sentiment over the last week or so and this has translated to some real weakness in price. Right now, BTC is trading more than 50% down on its highs (early January) and just how things have got to fall farther is anyone’s guess.
There has to be a point at which the portion of the market represented by long-term holders matches, or rises above, the portion that represents speculative short-term interest. At that point, we’ll see price bottom out and the market start to recover.
Price has bounced from here in the past, suggesting there’s some degree of support that exists at this level. The hope is that it can hold firm once again and the support can validate itself long term.
Anyway, let’s get some levels in place that we can use for the session this evening and see what we can do with the action we get.
As ever, take a quick look at the chart below to get an idea where things stand. It’s a one-minute candlestick chart and it’s got our primary range overlaid in green.
As the chart shows, the range that we’re looking at for the session today comes in as defined by support to the downside at 8926 and resistance to the upside at 8949.
We’ll be looking at getting in long on a close above resistance towards an immediate upside target of 9200.
Conversely, a close below support will have us in short towards 8800.
Let’s see what happens.
Charts courtesy of Trading View