It’s been a bit of a strange night of action in the bitcoin price overnight during the Asian session, and we are heading into the European open on the back of what turned out to be some pretty unpredictable action. Price traded up sharply around the turn of the night, before correcting to trade sideways for a little while, and then, after some consolidation, dropped again to carve out fresh intraday lows. From these lows, we saw a bounce, and the bounce has given us a nice range with which to play with during today’s European day session, and within which the bitcoin price currently trades.
So, with that said, and as we head into a fresh European session this morning, here’s a look at what we are focusing on near term. As usual, take a quick look at the chart below to get an idea of the levels in focus. It also shows the action for circa the last twelve hours or so, meaning you can get an idea of how price action played out overnight. It’s a five-minute candlestick chart.
As the chart shows, the range we are going with today is defined by in term support at 663 to the downside and, to the upside, 669 flat. It’s just about wide enough to serve up some intrarange action, so if price bounces once more, we’ll get in long towards resistance, with a stop just below support to define risk.
From a breakout perspective, if price closes below support, we will enter long with a downside target of 655. A stop at 665 defines risk nicely.
If we get a run to the upside, and price breaks (and closes above) in term resistance, we are going to look to get in long towards an immediate upside target of 680.
Charts courtesy of SimpleFX