So that’s it – another week’s worth of trading in the bitcoin price pretty much come to an end. We’ve got the morning European session ahead of us, and beyond that, the US session this afternoon, and then the weekend. Overall, it’s been a pretty good week. Action was nice and volatile heading into the start (and through until around yesterday midday) before settling into something of a range during the Thursday US evening session and in to the Asian session last night.
We managed to start above the 600 flat mark, and psychologically, this is pretty important. Why? Because 600 will likely serve as key psychological support for a while, and if we break it, there are no doubt plenty of speculative short positions waiting to activate on the break. As these positions active they will trigger a sort of cascade effect – one sell after another as the ask controls the bid – and this will push price down further. Exactly how much depends on the aggressiveness of the unseen positions, but based on experience we’d definitely put it in the $10 range, give or take a brief corrective upswing.
So, with all that said, what are we looking at this morning from an intraday perspective?
As ever, get a look at the chart below to get an idea of what we are focusing on. The chart is an intraday 5-minute candlestick chart with around twelve hours’ worth of action shown, and our range overlaid in green.
As the chart shows, the range we are focusing on is defined by in term support to the downside at 600 flat and in term resistance to the upside at 607.
A close above the latter will signal a bullish trade towards 615.
A close below support will put us short towards an immediate downside target of 592.
Charts courtesy of SimpleFX