The end of European session is quickly approaching and it’s not been a particularly good day for bitcoin and cryptocurrency space as a whole. A couple of developments out of Asia have led to some intraday weakness and the bitcoin price is now trading in around $4200 a piece – down around 16% on its weekend highs. Whether this decline will continue remains to be seen. Many have been waiting for a dip in order to load up and the recent decline offers up something of an opportunity to pick up an exposure to bitcoin at discount. If this is a valid thesis, we should see price bottom out relatively soon and bitcoin start to appreciate once more. Of course, it’s very difficult to catch a falling knife and that makes attempting to pick up a discounted exposure risky while price is still on the way down. Anyway, all this volatility means that we have plenty to go at from an intraday perspective and, for the time being, that’s all that matters.
So, without notice, let’s get some levels in place with which we can carry forward into the session this evening. As ever, take a quick look at the chart below before we get started so as to get an idea of where things stand. It is a one-minute candlestick chart and it has our range overlaid in red.
As the chart shows, the range we are using for the session tonight is defined by support to the downside at 4200 flat and resistance to the upside at 4269. Standard breakout rules apply near term, so we will look for a close above resistance to validate an upside entry towards a target of 4290. Conversely, a close below support will have us in short towards a downside target of 4165. A stop loss on the positions just the other side of entry will ensure we are taken out in the event of a turnaround.
Chart courtesy of Trading View