It’s Tuesday morning and it’s time for the first of our twice-daily bitcoin price watch analysis pieces of 2018. Last year was a monster year for the entire cryptocurrency space but exactly how the coming year is going to play out is anybody’s guess. Obviously, we are hoping for some degree of appreciation between now and the end of 2018 but the degree to which things appreciate and the severity of any corrections along the way remain to be seen and (of course) is well out of our control. All we can do, however, is maintain the strategy that has served us well for three or four years now – jumping in and out of the markets on short-term intraday breakout trades while maintaining some pretty solid risk management strategies on any positions we enter.
So, with this in mind, and for the first time this year, let’s get some levels in place that we can use going 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 where we are looking to jump in and out of the markets according to the rules of our intraday strategy. The chart is a candlestick chart and it has our primary range overlaid in green.
As the chart shows, the range we’re looking at for the session comes in as defined by support to the downside at 13619 and resistance to the upside at 13683. If we see price close above resistance, we will enter long towards an immediate upside target of 13750. A stop loss on the trade at 13658 works well to define risk.
Looking the other way, if price closes below support, we will enter short towards a downside target of 13550. A stop loss on this one somewhere in the region of 13640 looks good.