Right then. A fresh week is here in the bitcoin price, and we are hoping for a replication of last week’s volatility. This week, things should start to settle down from a fundamental perspective. There was a lot going on last week politically, and political uncertainty always filters through to the markets – that is, the financial asset markets. It’s really too early to tell whether or not this sort of impact will translate to sentiment shifts in crypto. Yes, we’re closing in on a decade of maturation, but even that’s far too early.
As a prediction, I guess at some point over the next decade or so we will see bitcoin’s valuation risk linked. If sentiment is weak, and investors in global markets are forced into a risk off sentiment, things like gold and other precious metals gain as markets look t park capital in safe haven assets.
Bitcoin makes for a nice alternative to these traditional safe havens (at least in concept) but right now there’s too high a degree of distrust in the space (wrongly, but it’s there nonetheless) for markets looking in from the outside.
Anyway, as usual, I digress. We’re here to put some key levels together, and try and draw a near term profit from the market. So let’s stop rambling and do just that.
The chart below shows our focus for today’s session.
As the chart shows, we are looking at support to the downside at 703 and resistance to the upside at 709. We’re going for a breakout approach only right now, so if price closes above resistance, we are going to get in long towards an immediate target of 715. A stop loss on this one at 707 defines risk.
Conversely, a close below support will put us in short towards 696. A stop on this one at 705 will ensure we are taken out of the trade in the event of a bias reversal.
Charts courtesy of SimpleFX
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