It’s late on Monday evening, and time to take our second look of the day at the bitcoin price market. In this morning’s analysis, we noted that price would likely be relatively inactive, primarily as a result of the Independence Day celebrations in the US, and the impact this has on wider market volume. As things turned out, we did get a bit of volatility, and were able to get into a short term scalp position as per our morning analysis. Having closed out that trade for a profit, we then saw price move back within the range we predefined this morning, so we’ve got a couple of choices. First, we could keep things as they are and go at this evening’s markets based on the same parameters we used all day. Alternatively, we could short our resistance level to the upside, and target a slightly more aggressive upside target.
Both are valid, but for this evening, we are probably going to stick with the former. Aggression is good sometimes, but on low volume days like this, it’s a risky approach. Let’s keep risk under control, and maintain our current approach going forward.
So, to see the levels in question, take a look at the chart below. It’s a fifteen minute candlestick chart with the last twenty four hours of action illustrated.
As the chart shows, we are going with in term support at 666 to the downside, and in term resistance at 674 to the upside. Our initial target will be an upside entry on a close above in term resistance, with a bullish target of 685. A stop loss on this one at 672 defines risk nicely.
If price breaks support, we’ll enter short towards 655. A stop at 670 flat will ensure we are taken out of the trade if price reverses against our position.
Charts courtesy of Trading View