We’re already well into the session on Wednesday and the bitcoin price has given us plenty to go at out of Europe. Overnight action brought with it a bit of weakness but nothing that we couldn’t handle and nothing that gives us anything to worry about from a long term valuation perspective. Near term, it’s all about sticking with the key levels and making sure that when price moves we are ready to take advantage of it. Nothing new, of course, but that’s what we like.
So, with this in mind, let’s get some levels in place with which we can start off our campaign in the bitcoin price today. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand and where we intend to get in and out of the markets according to the rules of our intraday strategy. It’s a one-minute candlestick chart and it’s got our key range overlaid in red.
As the chart shows, the range we are going at for the session today is defined by support to the downside at 4045 and resistance to the upside at 4094. We are initially going to go after a long trade (in the hope that current action will buck its downside trend), so we will enter long on a close above resistance towards an immediate upside target of 4130. A stop loss on the position somewhere in the region of 4080 will ensure that we are taken out of the trade in the event of a bias reversal. Looking short, if we get a close below support, we’ll be in a downside entry towards an immediate target of 400 flat. Again we need a stop on the trade and on this one somewhere around 4060 looks good.
Charts courtesy of Trading View