Bitcoin Price Watch; Trading for the Weekend

So that’s it. Another week’s worth of bitcoin price trading gone, and one during which we saw plenty of unpredictable, yet perfectly tradable, price action unfold. As ever, however, the end of the traditional financial week far from means the end of our trading week. Bitcoin’s decentralized nature means we are able to trade over the weekend, and this – as many who have followed along with our analyses for a while will know – has opened us up to some opportunities to get into the most rewarding trades of the week. Bitcoin volume often increases over the weekend, as Asia takes stock of its individual holdings and consumer to business purchases drive volume flow, and this volume will often lead to sharp movements come Saturday night or Sunday morning. Additionally, the opening of the Asian work week (Sunday afternoon, evening out of the US, Europe) marks a return to the speculative positions, and can also drive some decent volatility.

So, with this in mind, and as we head into the final few hours of the financial week in Europe, here’s a look at what we are setting up to trade in the bitcoin price, and how we intend to take advantage of any of the aforementioned volume spikes going forward.

As ever, take a quick look at the chart to get an idea of the key levels for the session.

Screen Shot 2016-05-20 at 10.29.08

As the chart shows, the levels we are looking at this evening, and beyond, are in term support at 436 flat, and in term resistance at . If you read our analysis this morning, you will recognize these are unchanged form our intraday morning strategy. Why? Because price hasn’t broken either yet, so the remain valid.

In light of this, the same strategy applies going forward. Log on a close above resistance with a target of .

Short on a close below support towards an initial downside target of 430. Stop loss at 438 to define risk.

Charts courtesy of SimpleFX

Source link

mm

TheBitcoinNews.com – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.