Bitcoin Price Watch; Near Term Reprieve?

a-blockchain (38)in #analysis • 6 years ago (edited)

We are closing in on the end of the European session in the bitcoin price and things have been pretty interesting today. We started out the session this morning by noting that action was relatively weak (in the sense that price was falling, and falling fast) and that this was primarily driven by a concurrent weakening of sentiment.

When things move like they have done recently, it can translate to a sort of downward spiral-type action that feeds itself – that is, price falling, people panicking, selling, price falling further because people are panic selling, etc.

Once this happens, there’s very little anyone can do other than sit out of the markets and wait for the sellers to shake out. The important thing is not to become a seller yourself.

Anyway, we’re all about the short term as far as out intraday analysis goes, so we’re going to try and focus on that right now and push the overarching momentum to the back of our minds.

So, with this in mind, let’s get some levels in place that we can use to carve out a profit from the market this evening, whichever way price moves.

As ever, take a quick look at the chart below before we get started so as to get an idea where things stand. The chart is a one-minute candlestick chart and it’s got our primary range overlaid in green.

As the chart shows, then, the range we are looking at for the session this evening comes in as defined by support to the downside at 8899 and resistance to the upside at 9095.

We’ll look at entering long on a close above resistance towards a target of 9250. Conversely, if we see price close below support, we’ll get in short towards a downside target of 8800.

Let’s see what happens.

Charts courtesy of Trading View

Bitcoin Price Watch; Here’s Where We’re Looking This Morning

It is Friday morning out of Europe and it is time to take a look at how action overnight played out in the bitcoin price and, in turn, how we can try and use this action to formulate a strategy going forward. As many reading will probably already be aware, this hasn’t been a particularly strong week for any cryptocurrency in the market. The majors, as well as the more alternative coins, are down across the board and it’s looking as though we aren’t going to see any degree of near-term reprieve. When you zoom out and look at the overarching market trends, things aren’t as bad as they seem right in the middle of a decline. With that said, however, it’s never easy to take a 50% or more loss and sentiment is, as a result, resoundingly low right now.

So, heading into the session today, here is what we are going for. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand. It is a one-minute candlestick chart and it has our primary range overlaid in green.

As the chart shows, then, the range that we are looking at for the session today comes in as defined by support to the downside at 8528 and resistance to the upside at 8888.

We are going to try and get in to a long trade if we see a close above resistance. On that one, a target somewhere in the region of 9000 flat looks good.

Looking the other way, we’re going to jump in short on a close below support.

Again we need a pretty reasonable target, so we’re looking at 8400 on this one. A stop somewhere in the region of 8560 will help us get out of the position if things turn against us.