Yesterday evening, our primary focus in our bitcoin price analysis was to try and figure out whether price had finally found support, and – in turn – whether this meant we could set ourselves up for a medium-term reversal against the overarching downside trend. We noted that price couldn’t continue to decline indefinitely, and that at some point, markets would have to balance between buyers and sellers, and that chances are, this wouldn’t happen below previous levels – i.e. those from which price rocketed towards the $1300 mark over the turn of the new year.
As it turns out, it seems we were correct. Price does seem to have found some support – for now at least – and bitcoin is slowly but surely regaining some strength against its recent losses. How long this will continue, nobody really knows. Many will probably try and forecast it, but in what is essentially an immature asset like bitcoin (i.e. one that we only really have around six or seven years worth of reliable price data for at most) then these forecasts are just guesses.
What we can do, is set up against the market on a short-term basis, and try and draw equally short-term profits from any volatility. So, with this in mind, let’s move forward into today’s strategy. Take a look at the chart below to get an idea of the levels in focus.
As the chart shows, the levels we are looking at today define our range, and are in term support to the downside at 775, and resistance to the upside at 782. It is a pretty narrow range, so we will be looking at our breakout strategy only for now.
Specifically, if price breaks through resistance, we will enter long towards an upside target of 790. Conversely, a close below support will put us in a short position with an immediate downside target of 767.
Charts courtesy of SimpleFX
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
<!–
–>
TheBitcoinNews.com – Bitcoin News source since June 2011 –
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
