Bitcoin Price Down; Not Out! – The Basics about Cryptocurrency

With all the positive action we saw in the bitcoin price at the beginning of this week, we expected that we might see further strength as the week drew on. Having reached highs around 245 flat yesterday, these hopes renewed. However, as it turns out, action during last night’s Asian session and yesterday’s European session has discounted the majority of these gains, and we now return to trade pretty much where we were beginning of the week. With this said, our strategy, accommodates both bullish and bearish moves, and so long as we get volatility, we can attempt to draw profit from the markets. So, as we head into a fresh European session on Thursday today, what are the levels that we are keeping an eye on, and where will we look to get in and out of the markets in order to draw profit? Take a quick look at the chart.

As you see, action overnight translated to some serious downside momentum in the bitcoin price, and we reached intraday lows of 237 flat. This level serves as in term support during today’s European session. 241.88 brings us in term resistance, and we are currently trading about mid-range (weighted towards support) at time of writing. We would like to see a run up towards resistance, and a close above this level on an intraday chart, to put us long towards 245.55. In this trade, a stop loss somewhere around 241 flat will leave us plenty of room to draw profit whilst also ensuring that were taken out of the trade in the event that we get a reversal in fortunes.

Looking the other way, a break below 237 would put us short (assuming we can close below this level) towards 233 flat. With about four dollars worth of reward here, a stop loss somewhere around 238.5 keeps things attractive from a risk management perspective.

Charts courtesy of Trading View