Here's a look at what we're looking at in the bitcoin price this evening.
SPONSORED ARTICLE: Tech Analysis articles are sponsored by SimpleFX — Simple as Never Before,
SimpleFX is a robust online trading provider, offering trading with Forex CFDs on Bitcoins, Litecoins, indices, precious metals and energy. Offers simple and transparent trading conditions.
For a brief period, today, the bitcoin price broke through $12,000 a coin. This is yet another major threshold down and, while we are currently trading in and around $11,200 on the back of a shorter-term correction, the fact that things are moving as they are suggests that we could be in for another strong week from a price perspective.
Whether we will see any more major thresholds breached remains to be seen but so long as we don’t see any corrections (that are too substantial), there is a good chance that sentiment will remain bullish and that – in turn – we will be able to ride the upside wave as it happens.
With this said, let’s jump into the shorter-term charts and see if we can get some levels in place that we can use to draw a profit from the market this evening. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand and where we are looking to jump in and out on any volatility according to the rules of our intraday strategy.
The chart is a one-minute candlestick chart and it has our primary focus range overlaid in green.
As the chart shows, the range we are using for our trading efforts this evening comes in as defined by support to the downside at 11560 and resistance to the upside at 11697. We are going to go at the markets with our standard breakout approach for the time being. So, in line with this, we will enter long if we see price close above resistance while, conversely, if we see price close below support, we will enter short.
A target on the former at 11750 looks good, while a target on the latter trade, the short entry, at 11480 should do the job.
Let’s see how things play out.
Charts courtesy of Trading View