We’re going to jump straight into our analysis for this evening, purely because the action we have seen during the session today suggests we could be in for a very near-term signal in the bitcoin price.
Take a look at the chart below before we get started. It’s our standard time frame for our intraday analysis (the shorter term, one-minute timeframe) and it’s got our primary range overlaid in green.
As the chart shows, we’ve set up as the one we are going to employ moving forward into the late US session this evening (and, beyond, into the weekend) is defined by support to the downside at 11011 and resistance to the upside at 11251.
The trade we are looking at right away (and the one that’s caused us to jump right into our coverage this evening as opposed to spending any time analyzing how action brought us to this point) is an upside entry, which will signal if we see a break and a subsequent close above resistance.
Specifically, then, we’ll enter long if we get a close above 11251 and we’ll target an immediate upside level of 11400 on the position. We need to place a stop loss below our entry so as to make sure we don’t get caught on the wrong side of a losing trade, so somewhere in the region of current levels at 11210 looks like it should do the trick.
Looking the other way, we’ll try and enter a short trade if we see price close below support. A target of 10900 on this one looks good, with a stop at 11050 in place to keep things tight from a risk management perspective.
Let’s see how things play out and we’ll revisit at the start of next week. Let’s hope we’ll see a bit more strength over the weekend and some easing of sentiment along the way.
Charts courtesy of Trading View