Here's a look at what we're looking at in the bitcoin price this morning.
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Our more regular readers will likely be familiar with the idea of repeating key levels. That is, the same levels popping up over and over again in the bitcoin price and proving crucial to sentiment when price is in and around them. Of course, major psychological levels such as round numbers fall into this category but we also often see what we might deem slightly less obvious levels being repeatedly influential purely because price has reacted in and around them in the past.
This is what we are seeing today, just ahead of the $10,000 mark.
It should make for some pretty interesting bitcoin price trading, so, let’s get some levels outlined that we can use for the session and see if we can draw a profit from the market going forward. 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 of the markets according to the rules of our strategy. The chart is a one-minute candlestick chart and it has our key range overlaid in green.
As the chart shows, the range that we are using for the session today comes in as defined by support to the downside at 9906 and resistance to the upside out 10090.
If we see price close below support, we will enter short towards an immediate downside target of 9840. A stop loss on the position somewhere in the region of 9925 looks like it should do the trick from a risk management perspective.
Looking the other way, and for our upside trade, if we see a close above resistance we will be entering long towards an immediate upside target of 10130. Again we need a stop loss on the position and 10070 looks like it should do just fine.
Let’s see how things play out.
Chart courtesy of Trading View