31 Jan Bitcoin Price Watch; Consolidation, Breakout, Recovery
It’s Wednesday evening and we are closing in on the end of yet another rough session in the bitcoin price. We were hoping for some degree of reprieve during the session today, with price dipping to fresh weekly lows overnight last night and setting up as if we were in line for some consolidation.
Unfortunately, things haven’t turned out that way and we wait yet again for the bitcoin price to bounce near term.
Whether it will happen tonight remains to be seen. As mentioned, we will likely need to see some degree of consolidation heading into the US afternoon session before any major breakouts (assuming the breakout is going to be sustainable) so that’s what we’re on the lookout for right now.
Consolidation, breakout, recovery.
So, let’s get some levels in place that we can use moving 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 how action today has influenced our approach going forward. The chart is a one-minute candlestick chart and it’s got our primary range overlaid in black.
As the chart shows, the range that we are looking at for the session this evening comes in as defined by support to the downside at 9850 and resistance to the upside at 10130.
Our standard breakout rules apply for the session, so our two primary entry points will be as follows:
A close above resistance will signal a long entry towards an upside target of 10250. A stop on the trade at 10100 defines risk to the downside on the position.
A close below resistance will signal a short entry, this time around with a target of 9750. Again we need a stop and somewhere around 9900 looks good.
Let’s see how things play out and we will revisit in the morning.
Here’s to a strong session.
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