Forex Minute Trade Plan – Bitcoin 01/05/2014

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Forex Minute Trade Plan - Bitcoin 01/05/2014

Another quiet day on the fundamental front in the cryptocurrency space sees Thursday’s ForexMinute trade plan completely price action-centric. Luckily for us however, the levels we have been using throughout the past week remain relevant, meaning there should be some nice, predictable gains to be made in the BTCUSD. Here’s what you need to know.

First, let’s take a quick look at the price action that set the key levels from which we will work today. The BTCUSD fell sharply into the weekend, and traded steadily to the downside to find support at 435.143. A two day range broke to the downside, and set weekly lows at 413.033, a level from which price has traded steadily to the upside during the last 48 hours. A short term break during today’s early hours has set in term support at 442.232 and in term resistance at daily highs, and April 27 resistance, at 450.163.

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These are now the levels to watch. the BTCUSD is currently testing the former, so if the bears remain in control and manage to break in term support look for further downside towards an initial target of the 200 period SMA at 435.143. A close below this level would bring April 29 lows into play.

If current support holds firm, look for BTCUSD strength to offer up an intraday technical bias. In term resistance represents an initial upside target, and keep an eye on price action around this level to gain insight into the likely future direction of the pair. A break, and a close, above 450.163 would validate April 26 resistance at 455.931 as an initial target, and pave the way for fresh weekly highs. Further strength could bring 471.552 into play as the day matures, but even with strong bullish momentum it is more likely that this level will feature in tomorrow’s trade plan.

To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com