We are closing in on the end of another day’s trading in the bitcoin price space and things are really starting to heat up now. This morning, we said we’d be looking for some degree of consolidation in the markets so as to set down a base from which bitcoin can stage a longer-term recovery.
We saw pretty much exactly what we were hoping for, albeit with the exception of a breakout to the upside.
With that said, we’re now looking at price hovering in and around the lower end of tonight’s range, so if we see a solid bounce (which could well happen, looking at the shorter term volume metrics), a break is far from out of the question.
So, let’s not waste any more time – let’s jump into our analysis and try and get the levels together that we need to use for this evening’s session and that will allow us to draw a profit from the market if we see the sort of action we are looking for.
As ever, before we get into the detail, take a quick look at the chart below to get an idea where things stand. The chart is a one-minute candlestick chart and it’s got our primary range overlaid in green.
As the char shows, the range that we’re looking at for the session this evening comes in as defined by support to the downside at 11320 and resistance to the upside at 11450. We’re going to keep an eye out for a break above resistance, followed by a close above that level, as an entry signal towards an immediate upside target of 11600. Conversely, if we see a close below support, we’ll be jumping into a short entry towards an immediate downside target of 11420.
Let’s see how things play out and we’ll revisit in the morning.