01 Feb Bitcoin Price Watch; Hedging The Dip
So it’s time to put forward the next of our bitcoin price watch analyses – this time for a Thursday morning European session. This week has not been a good one. Neither was last week, but this one hurts that little bit more given that price has now fallen and held below the $10,000 mark – a level that people have been watching closely as a key psychological threshold.
This suggests that – at least near term – we might see some further weakness in the markets as price pushes forward into the session today.
As we always say, however, there’s really nothing we can do outside of push forward with an intraday approach and hope that if things do continue to weaken, we are able to hedge with a downside entry in the direction of the decline.
So, with this all 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. It’s a one-minute candlestick chart and it’s got our primary range overlaid in black.
As the chart shows, then, the range that we are looking at for the session today comes in as defined by support to the downside at 9512 and resistance to the upside at 9660.
This is a pretty tight range, so we’ll be looking at sticking with a breakout trade for the time being as opposed to bringing both a breakout and an intrarange strategy into play.
In line with this, then, we’ll try and get in long on a close above resistance, targeting 9800 to the upside with a stop at 9620.
Looking short, a close below support will signal a short entry towards 9400. A stop on this one at 9550 works well.
Let’s see how things play out and we’ll revisit a little bit later today.