30 Jan Bitcoin Price Watch; Trading The Downside Action
So we are drawing to a close on yet another day of bitcoin trading and, unfortunately, it’s not been a great one from a price perspective. We said this morning that we were looking for some degree of sustainable long-term recovery and that an extended period of consolidation would provide the floor we were looking for.
As it turns out, however, we haven’t got what we wanted.
This doesn’t mean it won’t come – we’ve seen this sort of action weigh on price before – but it does mean that sentiment is decidedly weak.
All we can do is stick tight with our strategy and try to make sure that we are ready for anything that does happen, be that from an upside or a downside perspective.
So, with this said, let’s get some levels in place that we can use for the session 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. It’s a one-minute candlestick chart and it’s got our primary range overlaid in black.
As the chart shows, the range we are looking to employ in our trading efforts this evening comes in as defined by support to the downside at 10230 and resistance at 10470.
We will look out for a close above resistance to validate an immediate upside entry towards a target of 10600. A stop loss on the trade somewhere in the region of 10400 works well from a risk management perspective.
Looking the other way, if we see price close below support, it will signal a downside entry towards an immediate bearish target of 10050.
A stop on this one somewhere around 10280 will take us out of the trade if things happen to turn against us, meaning we won’t get caught on the wrong end of a losing position.