In yesterday evening’s analysis, we noted that the bitcoin price seems to have settled down a little bit, and that this might indicate some degree of longer-term support. After the recent decline seen across the last week or so, some support is due, because although it seems like things are in freefall right now, they cannot stay that way indefinitely. Markets have to rebalance at some point, and with any luck, we are now approaching the balance point. Of course, it’s impossible to say for sure, but that’s how things seem right now. If that’s the case, then today, we’re probably going to see some sideways action, and not too much breakout activity. With this in mind, and in anticipation of this being how price plays out, we’re going to look at trading an intrarange strategy first and foremost, before bringing our breakout strategy into play if we get any volatility. So, with this in mind, and as we head forward into today’s session, here is a look at the key levels out of Europe, and where we will look to get in and out of the markets on any volatility.
As ever, take a look at the chart below to get an idea of what is on.
As the chart shows, the range in focus for today’s session is defined by support to the downside at 744, and resistance to the upside at 754. As mentioned, intrarange is on, so long on a bounce from support and short on a correction from resistance. A stop loss just the other side of the entries in both instances defines risk nicely.
If we do see a break, we will enter in the direction of the break. Specifically, a close above resistance will put us long towards 765, while a close below support will signal a short entry towards 736.
Let’s see how things play out.
Charts courtesy of SimpleFX