Bitcoin Price Watch; Another 600 Test?

The bitcoin price has had a pretty rough start to the month. Overnight last night, and during yesterday’s session, price declined to break the 600 support level – a level that has held firm since mid June. From support price then bounced, and we currently trade just ahead of this level, but the overarching trend remains to the downside, so it looks as though we are going to get a retest going into this evenings session.

Whatever happens, we’re going to make sure we are ready – be that by way of an intrarange trade on a bounce from the 600 range or a breakout position as price breaks support or resistance.

So, with this said, let’s take a look at what’s on the cards this evening. As ever, take a quick look at the chart below to get an idea of the levels in focus before we get into the details. It’s a fifteen-minute candlestick chart showing the last couple of days’ worth of action, with our key levels overlaid in green.

Screen Shot 2016-08-02 at 14.58.45

Screen Shot 2016-08-02 at 14.58.45

As the chart shows, the levels in focus are in term support to the downside at 598 (this takes into consideration the most recent swing low and 600 support break) and in term resistance to the upside at 611 flat. We’ve got enough room for an intrarange position, so if price bounces from support or corrects from resistance, we will get in towards the opposing level wit ha stop just the other side of the entry to define risk.

Looking at things from the breakout strategy perspective, we will look for a close above resistance to validate an upside position towards 620 with a stop at 608 to keep our downside risk tight.

Conversely, a close below support will signal short, and we’ll look to get in towards 590 flat, A stop on this one at 601 works well.

Happy Trading!

Charts courtesy of SimpleFX

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