So that is another day complete in the bitcoin price and we have one day left for the week. It is been a pretty incredible week as far as upside momentum is concerned. Last week, we saw some pretty flat action throughout the majority of the first few days. During the latter couple of days, however, price picked up a bit, and then the upside momentum strengthened over the weekend. It carried through to the early morning session out of Europe on Monday, and we have not looked back since. 1400, 1500, and now it’s looking like 1600 might join the list – these are exciting times in the bitcoin space.
Of course, we called it. As price rises like this, mainstream entities pick up on the gains, and wider market participation feeds the fire. There is always the potential for a correction at the sort of highs, and when we say potential, we mean it is coming, but as long as we ensure that we move forward with our stoplosses in place, it doesn’t really matter when it comes. The hope is of course, that it is not too severe when it does. Anyway, let’s look at the levels for this evening, and try and get a strategy in place.
Take a look at the chart below before we get started. It is a five-minute candlestick chart and it has our range overlaid in green.
As the chart shows, the range we are looking at this evening is defined by support to the downside at 1565, and resistance to the upside at 1588. We are going forward with a breakout strategy only, for now, so we will enter long on a close above resistance, and short on a close below support. In the first instance, we will target 1600 flat. On the latter position, will enter towards 1550.
Charts courtesy of TradingView