So, the correction is here but don’t panic. As we noted in this morning’s coverage, we were well overdue a near-term correction in the bitcoin price and so long as wider markets don’t panic and sell off their longer-term holdings in anticipation of a deeper decline, everything will be all right. We managed to jump into the markets a little earlier on today for a quick turnaround short entry and, for as long as the correction persists this evening, we intend to do the same repeatedly.
With us being able to draw profit from both ends of the market, this sort of downside entry serves as a hedge against any longer-term value depreciation for our holdings. That’s always nice. Anyway, let’s get some levels outlined for the session this evening and try to set up against what have turned out to be pretty fast-moving markets today.
As ever, take a quick look at the chart below before we get started so as to get an idea of where things stand right now. It is a one-minute candlestick chart and it has our key range overlaid in red.
As the chart shows, the range we have set up with tonight is defined by support to the downside at 3879 and resistance to the upside at 4038. That is a pretty wide range, but it doesn’t mean we can be too loose with our stop losses. If we see price break below support, we will enter short towards 3810. A stop loss on the trade at 3900 flat looks good. Looking the other way, if we see price break above resistance, we are going to enter a long trade towards 4075. A stop loss on this one somewhere in the region of 4020 works to define risk on the position and will ensure we don’t get caught on the wrong end of an irretrievable loss.
Charts courtesy of Trading View