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The European session has now drawn to a close, and it’s time to take a look at the action we saw in the bitcoin price throughout the day, and see if we can use that action to put together a strategy for this evening out of the US, and beyond, into Asia. Once again, it’s been a pretty tough day. Last night we noted that we got taken out on choppy action by a stop loss hit on a short position. It wasn’t a crippling loss (that’s why our stops are in place, after all) but it was a bit frustrating as we are now net down on the week for the first time in a long time. We were hoping to recover this during the European session today, but as things have turned out, we just picked up another stop loss. Pretty much identical – choppy action, downside break, quick reversal, return to trade in range.
Oh well, not to worry.
We’re gong to dust ourselves off, shuffle our key levels around a bit, and see if we can get a decent entry this evening to even things up. Let’s get to it. First up, take a look at the chart below to get an idea of what we are focusing on for the forward session. It’s an intraday candlestick chart with five minute candles, showing the last twelve hours’ worth of action.
As the chart shows, the range in focus for this evening is defined by support to the downside at 572 and resistance to the upside at 577. Intrarange is off the table, so breakout only for tonight.
Specifically, if we see price break above resistance we will look to get in long towards an immediate upside target of 585. Conversely, a close below support will put us in short towards 565 flat. Stops at the other side of the entry to define risk.
Charts courtesy of SimpleFX
