We’re off on another week of trading in our Bitcoin price operations and we’re starting off the session out of Europe on a pretty negative note. The price dipped throughout the weekend to some of the lowest levels we have seen in a while and the dip could be far from over right now. Why? Because news media outside of the bitcoin space picked up on the initial run and – undoubtedly – will do the same with the decline. When the Bitcoin price gets mainstream coverage the tone of the coverage will often dictate action. In other words, when the price is gaining strength and the media is reporting it, people buy. The opposite is true when the price is falling.
So, with this all noted, let’s get to our key levels for the session. As ever, take a quick look at the chart below so as to get an idea of what’s on and where things stand right now. It’s a one-minute candlestick chart and it’s got our key range overlaid in green.
As the chart shows, the range we are focusing on for the session today is defined by support to the downside at 2057 and resistance to the upside at 2098. We will initially look for a close above resistance to validate an upside entry towards a target of 2130. A stop loss on this one somewhere in the region of 2088 will serve to get us out of the trade if and when price reverses, ensuring we aren’t caught on the wrong side of a losing position.
Looking the other way, if we get a close below support, we are going to look at getting in short towards a downside target of 2010. A stop on this one somewhere in the region of 2067 looks good.
Let’s see how things play out.
Charts courtesy of Trading View