Yesterday evening, in our twice daily bitcoin price watch piece, we published our take on the bitcoin price for the evening session. We hypothesized that – on the back of the momentum we had seen throughout the majority of the last few weeks, we would see further bullish momentum. If we did, we suggested we would enter towards 400 flat as an immediate upside target. We also noted that this level would likely serve up some interim resistance (primarily because of the psychology of such a key level. As it has turned out, one of our hypothesis turned out correct, and the other not so much. Take a look at the chart to see what we mean.
As you can see, the bitcoin price rocketed through the 400 flat level today, and has just reached the 500 mark – far from the corrective action we expected – not that we are complaining. The question now is – now what? We can’t really expect anything to fit our normal trading standards – a $100 gain in the space of 24 hours is extreme, so we really need to tighten up our risk parameters and see if we can eek out profit on volatility.
The levels we are watching for todays action are associated with the 5 min chart rather than the 15 min (normal) – purely because we need to try and keep our risk tight. 501.78 serves as in term resistance to the upside, while 480.43 gives us in term support.
If we can break above in term resistance, it will put us long towards yet another upside target of 510 flat. A stop on this one somewhere around 496 will maintain a positive risk reward profile on the trade. Looking the other way, a correction from current levels gives us the opportunity to enter short towards in term support with a stop just the other side of resistance. Let’s see what happens…
Charts courtesy of Trading View