Right then, here we are at the end of a crazy week’s worth of trading in the bitcoin space. Price has rocketed through a spate of our target levels, with pretty much every day bringing with it a fifty to one hundred dollar run, and everyone and their brother are talking about the action seen in the sector.
All of the major news outlets are picking up on what’s happened and we’re seeing more traditional financial assets shift to respond to the situation. In the microcap equities space, for example, we’re seeing pump and dumps materialize based purely on tenuous links to bitcoin. That’s always a sure-fire sign that a space is hotting up.
All of this is secondary to our intraday bias, of course. For the last forty-eight hours or so we’ve suggested that we might see a correction near term. This potential was always going to amplify as we headed into the weekend, as naturally, those who’ve drawn profit from the long-term bitcoin price appreciation will want to reduce their risk (and in turn, their exposure) to the markets while they are away from their screens doing whatever they do over the weekend.
We’ve seen this correction (to some degree) this afternoon, and we’re now looking at a bitcoin price of around $1560. Down on recent highs, but nothing to scoff at.
So how are we approaching things as we close out the week this evening?
Let’s take a look.
The chart below highlights the levels in focus for this evening’s session.
As the chart shows, the range we’ve got for tonight is defined by support at 1542 and resistance at 1564. Breakout only for tonight, so we’ll be in long towards an upside target of 1575 if we see a close above resistance, and short towards a target of 1530 if we see a close below support.
Charts courtesy of Trading View