Alrighty then, let’s get another day’s trading underway in the bitcoin price. In yesterday evening’s analysis, we noted that action throughout the week so far has been relatively strong and has given us a long-term bullish bias in the markets. We also noted that – if this bias didn’t prove solid going forward – we should be able to draw a profit from the market on any sort of correction, but we would prefer to enter long as, when we get trades in line with the overarching momentum, the breakouts are generally more reliable.
As it turns out, we got exactly what we were looking for.
Price broke through our predefined resistance level relatively early on into the evening (that’s mid-session US afternoon) and we ran up relatively quickly towards the target we had put in place for a nice quick turnaround profit. Subsequent to our taking profit on the trade, the bitcoin price did correct a little bit, but we weren’t set up to enter on the correction so we ignored it and set our sights on this morning’s session open.
Which brings us to where we stand now.
Price is currently trading in and around the 2500 mark and we are setting our range against this level. To get an idea of what we are looking at, take a quick look at the chart below before we get started. It is a one-minute candlestick chart and it has our range overlaid in blue and red.
As the chart shows, the range we’re looking at today is defined by support to the downside at 2460 and resistance to the upside at 2530. That is a pretty wide range, but with action as volatile as it has been, we need to leave ourselves plenty of room to maneuver.
So, if we see a break above resistance, we will enter long towards an upside target of 2560. Conversely, a close below support will have us in short towards 2413.
Charts courtesy of Trading View