It’s been about six hours since published the first of our two, Tuesday session intraday analyses, and a look at action across the period reveals some pretty frustrating movement in the bitcoin price. We managed to get into a trade on a break of in term support, but having bounced around this level for a few hours post entry, have since been taken out for a small loss on the position. This sort of choppy action can be difficult to approach, and it generally comes down to two things: the first, that market indecision won’t push the price of the asset in question into any solid, sustained move. The second, that our key level placement (in this instance, this morning’s support) was misplaced. Unfortunately, it looks as though this time around, it’s the latter. We could probably have done with either tightening up our range a little, and in turn, raising our stop loss to a higher level, of bringing support down to incorporate any false breaks. It’s done now, however, so let’s not dwell. Instead, let’s take a look at what we are focusing on for this evening’s session, and try to draw a profit from forward action to mitigate the small loss we took earlier today. The chart below shows action from the day so far, and the levels we are looking at now.
As you can see, just as we did last night, we’re tightening up our range in an attempt to benefit from some scalp action, rather than head for a wide breakout. As the chart shows, in term support comes in at 410 flat, while in term resistance sits at 411.78.
A break of resistance will put us long towards a tight upside scalp of 441 flat, with a stop at 411.40 defining the downside risk. Conversely, a support break will signal a short entry towards 408 flat. A stop on this one at 410.80 works nicely.
Charts courtesy of Trading View