In this morning’s bitcoin price watch analysis, we noted that, while the overarching momentum is very much with the bulls, there’s always the potential for a near-term correction to spoil the party. Well, perhaps spoil the party is a bit harsh. We expect a correction whenever we see price move to the degree that it has done over the last few weeks and our strategy is in place to accommodate for any such correction. As such, when it happens, it’s not that big a deal. In fact, not only do we not really suffer when we get a correction, we can often use the downside part of our breakout strategy to profit from it and – to a degree – serve as a hedge against any depreciation in the value of any long-term holdings.
As it turns out, we got exactly such a correction today.
Price dipped to below the 2800 mark mid afternoon and bottomed out at around 2750 subsequent to the break. From these lows, we’ve seen a pretty decent bounce, and price now hovers in and around the above noted 2800 level.
So, we’re going to set up a couple of key levels for the session going forward in an attempt to continue our successes into the US afternoon session and, beyond, into the Asian open tomorrow morning.
Take a look at the chart below to get an idea how things stand. It’s a five-minute candlestick chart and it’s got our key range overlaid in blue.
As the chart shows, then, the range we’ve got in our crosshairs tonight comes in at support at 2754 and resistance at 2800 (the most recent swing low and high respectively).
A break and a close below the former will get us in short towards 2730. A close above the latter will have us in long towards 2830.
Let’s see how things play out.
Charts courtesy of Trading View