Bitcoin Price Watch; Deconstructing Today’s Action

Its that time again – that’s right, time for the second of our twice daily bitcoin price watch articles, and for us to take a look at how action during the European session today is going to influence our strategy for this evening’s session out of the US.

In this morning’s article, we noted that price has logged some pretty solid upside gains across the last week or so, and that this might be indicative of further gains as we head forward into this evening, and beyond into the Asian session tomorrow morning. Action today supports this hypothesis, with the bitcoin price having broken our in term resistance level a little earlier on this afternoon and putting us in a long trade towards 462. We remain in this trade, and as a result, wont be entering any fresh trades this evening (that is, at least, until this one resolves).

For those that aren’t yet in a position, however, let’s take a look at the range in focus for this evening. The chart below is a fifteen-minute candlestick chart that shows the last forty-eight hours’ worth of action in the bitcoin price, and illustrates the upside action we alluded to in the introduction to this piece.

Screen Shot 2016-05-26 at 16.54.29

As the chart shows, the range we are focusing on this evening is defined by in term support to the downside at 445.5 (broken resistance from this morning) and in term resistance to the upside at 460 (the most recent swing high).

If price breaks and closes above in term resistance, we will look to enter long towards an initial upside target of 465 flat. A stop loss on this one at 457 defines risk nicely.

Looking short, a close below support signals to the downside, with a target of 450 flat looking reasonable. A stop at 457 keeps our risk under control.

Charts courtesy of SimpleFX

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