It is Friday morning out of Europe and it is time to take a look at how action overnight played out in the bitcoin price and, in turn, how we can try and use this action to formulate a strategy going forward. As many reading will probably already be aware, this hasn’t been a particularly strong week for any cryptocurrency in the market. The majors, as well as the more alternative coins, are down across the board and it’s looking as though we aren’t going to see any degree of near-term reprieve. When you zoom out and look at the overarching market trends, things aren’t as bad as they seem right in the middle of a decline. With that said, however, it’s never easy to take a 50% or more loss and sentiment is, as a result, resoundingly low right now.
So, heading into the session today, here is what we are going for. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand. It is a one-minute candlestick chart and it has our primary range overlaid in green.
As the chart shows, then, the range that we are looking at for the session today comes in as defined by support to the downside at 8528 and resistance to the upside at 8888.
We are going to try and get in to a long trade if we see a close above resistance. On that one, a target somewhere in the region of 9000 flat looks good.
Looking the other way, we’re going to jump in short on a close below support.
Again we need a pretty reasonable target, so we’re looking at 8400 on this one. A stop somewhere in the region of 8560 will help us get out of the position if things turn against us.
Charts courtesy of Trading View