Bloodbath. That’s the only way to really describe what’s happening in the bitcoin price and wider crypto space right now. Coins are down pretty much across the board, with pretty much every token or digital asset taking a hit on the back of a spate of fundamental developments.
South Korean regulations came into force, Facebook decided to ban crypto ads and sentiment is incredibly weak.
But never fear.
Corrections are just something we’ve learnt to live with in the cryptocurrency space and it’s something that many have ridden out in the past and that – almost certainly – we’ll have to ride out going forward.
And when you step back and look at the big picture, bitcoin was below $1,000 this time last year. We’re looking at close to 1000% on that pricing – not a bad return.
Anyway, let’s try and get some levels in place that we can use for the session going forward. We’re going to try and make the most of a bad situation and, with any luck, hedge against any further downside action if and when it materializes.
So, as ever, take a quick look at the chart below before we get started so as to get an idea where things stand right now (warning: it’s not pretty).
As the chart shows, then, the range that we’re looking at for the session this morning comes in as defined by support to the downside at 10090 and resistance to the upside at 10250.
We’re going to get in to a long trade if we see price close above resistance. On this one, we’ll target 10500 with a stop at 10200 in place to define risk.
Looking the other way, we’ll jump in short on a close below support towards a downside target of 1000 flat. A stop at 10120 looks good on this one.
Let’s see what happens.
Happy Trading!
