And that is things pretty much done for our Thursday efforts in the bitcoin price out of Europe, meaning it’s time now to look forward to the US afternoon session and – beyond – into the Asian session early morning tomorrow. In this morning’s analysis, we set up against the market in anticipation of a run to the upside and said that we would enter on a break of our predefined resistance if we saw such a run. We also noted that we were expecting a near-term correction, and made sure that – on the back of these expectations – we didn’t overstretch our upside target. Action has now matured throughout the day, and our strategy was pretty much spot on. Smart Trading. This doesn’t happen all the time and is why we always have stop losses in place, but when it does, it’s pretty satisfying.
Price broke through our predefined resistance and we entered long on a candlestick close above that level. We saw a run almost immediately through to our upside target, and then – subsequent to our target being taken out – a correction towards where price currently trades in and around the 2700 mark.
As we move forward into this evening’s session, then, let’s get some levels outlined with which we can go at price in an attempt to replicate today’s success. As ever, take a quick look at the chart below to get an idea of what is on before we get started.
As the chart shows, the range we are using this evening is defined by support to the downside at 2683 and resistance to the upside at 2760. This is a far wider range than we would normally use, but with the volatility that we have seen, and taking the recent correction into consideration, it is necessary at this stage to adapt a little.
So, a close above resistance will get us in towards an immediate upside target of 2790. Conversely, a close below support will present short towards 2655. Stops at 2750 and 2690 respectively define risk well.
Charts courtesy of Trading View