For anybody with cryptocurrency holdings, the last few days have been pretty tough. Subsequent to the cancellation of the planned hard fork, sentiment turned decidedly negative (counterintuitively) in the space and the bitcoin price took a real hit as a result.
Action over the weekend broke through the spate of broken resistance levels that we had highlighted throughout the majority of the last couple of weeks as being key levels to watch and, as each level fell, more and more sellers entered the market pushing price down further.
We are about to kick off the session out of Europe today and the hope is that price can stage something of a recovery as we move forward.
We are going to try and take advantage of any such recovery but, at the same time, we intend to be ready to jump in short if the downside action returns. So, with this noted, let’s get some levels in place that we can use to try and draw a profit from the market as we move forward into today’s session. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand and where we intend to jump in and out of the markets if we get any of the sort of volatility we are looking for.
The chart is a one-minute candlestick chart and it has our range overlaid in green.
As the chart shows, the range we are looking at for the session today is defined by support to the downside at 6456 and resistance to the upside at 6541.
We will enter long on a close above resistance towards an upside target of 6575. Conversely, if we see a close below support, we will enter short towards a target of 6410. Stop losses on both trades will ensure we are taken out of the positions in the event of a bias reversal.
Charts courtesy of Trading View