We knew it would only be a matter of time before we saw some degree of correction in the bitcoin price and – as it turns out – it looks as though the correction is upon us. We’ve seen bitcoin take a bit of a hit over the last few days and, as noted in this morning’s analysis, we were hoping that today’s session would bring with it something of a reprieve to this correction. We did get a bit of upside action early on in the day, but the upside run corrected pretty quickly, and we’re looking at things closing out the session pretty much where they began.
As we always say, however, this is easily tradable stuff. We don’t need constant upside runs to draw a profit from the market – that’s the beauty of our strategy.
So, with this noted, and as we head into the US session this evening, let’s get our ducks in a row and apply a framework to the current action from which we can pull entry signals.
As ever, take a quick look at the chart below before we get moving so as to get an idea of what’s on and where things stand. It’s a five-minute candlestick chart and it’s got our key range overlaid in blue.
As the chart shows, the range we’ve set our sights on for tonight comes in at 2725 to the downside and 2749 to the upside. We’ll look for a close above resistance to signal an upside entry towards a target of 2770. Conversely, if price closes below support, we’ll be in short towards an immediate downside target of 2700 flat. We always use stops, but especially when things are as volatile as they are right now, we’re going to need to make sure we keep things tight. Five dollars either side of the entry points looks good for both positions.
Charts courtesy of Trading View