Let’s get things kicked off for a fresh morning of trading in the bitcoin price. Action overnight was pretty volatile. We set up against price with a relatively wide range, but despite this width, we still saw numerous entry points as price ran up and down through our respective key levels. For the session today, we are going to attempt to emulate last night’s approach. That is, we are setting up against price with a slightly wider range than normal on a narrower timeframe chart and we will look to get in and out of the markets according to the rules of our intraday strategy at numerous breakpoints during the session.
So, with this noted, and as we kick things off for the start of the European session, here is a look at where we are looking to get in and out of the markets. As ever, take a quick look at the chart below before we get started to get an idea of what is on and what happened overnight to bring us to the current point. It is a three-minute candlestick chart (as we said, this is a slightly narrower timeframe than we normally use) and it has our key range overlaid in blue.
As the chart shows, the range we have in focus right now is defined by support to the downside at 2300 and resistance to the upside at 2339. Standard breakout rules apply today, so we will be in long on a close above resistance towards an immediate upside target of 2355. Conversely, a close below support will have us into a short trade towards a downside target of 2280. A stop loss on both trades is necessary to ensure that we are taken out the positions in the event of a bias reversal, and somewhere in the region of five dollars either side of entry looks good to that aim.
Chart’s courtesy of Trading View