After a pretty rough overnight session in the bitcoin price, it looks as though we are finally getting some reprieve on the correction that has dominated this week’s action. This isn’t to say we have seen the last of it, there is every chance that it might continue and that this could just be a small bounce, but for now, at least, it looks as though the worst of it is over.
This means that we can switch our risk off sentiment to something a little bit more risk on, widen out our stop losses and go after a little more aggression to the upside if we see a breakout trade materialize. Those who have been with us all week will know we have been looking primarily to the downside for our breakout entries. We have got in and out of the markets on a couple of upside positions, but we have been forced to limit our targets based on the overarching beverage momentum.
Going forward, we can be a little bit more neutral, as long as price continues to act as it did overnight last night.
If things turn around again, we will have to reevaluate our bias.
So, let’s get to the details. As ever, take a quick look at the chart below before we get started. It is a one-minute candlestick chart, and it has our key range overlaid in blue.
As the chart shows, we are trading at the very top of price action today, with a range defined by support to the downside at 2485 and resistance to the upside at 2503. Standard breakout rules apply, so a close above resistance will put us in long towards 2520. Conversely, a close below support will have us in a short trade towards 2465. Stop losses on both positions will ensure we are taken out of the trades in the event of a bias reversal.
Charts courtesy of Trading View