It is Tuesday morning and the session out of Europe in the bitcoin price is about to kick off. Action during yesterday’s session was nice and volatile and we had plenty of opportunities to jump in and out of the markets according to the rules of our intraday strategy. For anybody who missed our coverage, it might be worth checking out our analysis here. For those that did catch it, our thesis overnight remained strong and we managed to maintain a relatively clean risk profile on the positions we entered – something that we were unsure about whether we would be able to achieve when the late session initially kicked off.
So, we have a fresh session ahead of us today and we are looking for much of the same sort of action as has come so far this week to continue our winning trend.
With this in mind, let’s get to the detail.
As ever, take a quick look at the chart below before we get started so as to get an idea of what is on and where things stand right now in the bitcoin price. It is a one-minute candlestick chart and it is our key range overlaid in blue.
As the chart shows, the range we are looking at today is relatively wide and straddles the 2700 flat region. Specifically, we have support at 2647 and resistance at 2710. We will initially look for a close above resistance to validate an immediate upside entry towards a target of 2740. A stop loss on this one somewhere in the region of 2700 flat looks good. Looking the other way, if we see a close below support, we will enter a short position towards a downside target of 2625. This one is a little tighter from a reward perspective and so we need a slightly tighter risk parameter – somewhere in the region of 2655 looks good.
Chart courtesy of Trading View