Tuesday, July 23, 2024

    Bitcoin Price Watch; Trading The Recovery

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    It is Friday morning and it’s time to take the first of our twice daily looks at the bitcoin price. Over the last few weeks, the final session of the week (i.e. the one that lies just ahead of us) has been quite a bit more active than the sessions that preceded it. Exactly what this is symptomatic of remains unclear but it’s a trend that we have been able to take advantage of on a number of occasions and it’s one that, heading into today’s session, we hope we will be able to take advantage of once more.

    So, to quickly address price action overnight, things ran up late US to stage something of a recovery and then took a bit of a dip heading into the early morning European session this morning. Right now, we are sitting somewhere between the peak and the trough and, with any luck, we will see things once again reverse to the upside and eat away at the end of year decline that we saw heading into the new year last week.

    As ever, then, take a quick look at the chart below before we get into the nitty-gritty. The chart is a one-minute candlestick chart and it has our primary focus range overlaid in green.

    As the chart shows, the range that we are using for the session today comes in as defined by support to the downside at 15969 and resistance to the upside at 16190.

    If we see price close above resistance, we will enter into a long trade towards an immediate upside target of 16300. A stop loss on the position somewhere in the region of 16165 looks good from a risk management perspective. Conversely, looking the other way, if price closes below support, it will signal a short entry towards a downside target of 15880.

    A stop on this one at 15990 works well.

    Charts courtesy of Trading View

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