In this morning’s bitcoin price watch analysis piece, we covered the overnight dip and subsequent consolidation, suggesting that a breakout of said consolidation could signal a major long-term reversal and a return to the upside momentum that has seen bitcoin run to its recent highs over the last few months.
As it turned out, we did see the breakout and we did see the run. Price action today has brought bitcoin to trade back just shy of $4600 a piece and it looks as though the temporary blip in appreciation is now all but over.
We have had quite a bit of luck jumping in and out of the markets on both the initial decline and the subsequent correction and we are going to enter the fray tonight in the hope that this look can continue throughout the late European session and the mid to late US sessions going forward.
So, with that said, let’s get some levels in place with which we can try and draw a profit from the markets this evening. As ever, take a quick look at the chart below before we get started so as to get an idea of what is on and where things stand for the session. It is a one-minute candlestick chart and it has our range overlaid in red.
As the chart shows, the range we are looking at for the session this evening comes in as defined by support to the downside at 4563 and resistance to the upside at 4584. We are just going to be pretty conservative this evening, with a breakout approach dominating our strategy. So, if we see a close above resistance, we will enter long towards an immediate upside target of 4610. Conversely, a close below support towards a downside target of 4510 will work well as a downside position and subsequent target.