The European session is now well underway in the bitcoin price it’s time to take a look at how action overnight can feed into a strategy moving forward today. In yesterday’s analysis, we commented on the fact that the correction we have seen during the early week looked to be reversing and that the late US session could bring with it a fair amount of upside momentum if things played out as expected. With the overnight session now in the rearview mirror, a look at the charts suggests that we were correct to make this call. The bitcoin price has all but recovered the lost strength and currently trades in and around 4200 – a level that should now serve as medium-term support.
So, with this in mind, here is a look at what we are focusing on in the bitcoin price and where we intend to jump in and out of the markets as and when we see price move during the session today. As ever, take a quick look at the chart below before we get started so as to get an idea of what is on where things stand. It is a one-minute candlestick chart and has our key range overlaid in red.
As the chart shows, the range we are looking at for the session today is defined by support to the downside at 4205 and resistance to the upside at 4249. We will initially look for a close above resistance to validate an immediate upside entry towards a target of 4290. A stop loss on the trade at 4240 works well. Looking the other way, if we see price close below support, we will jump into a downside entry towards a target of 4175. A stop us on this one somewhere in the region of 4215 serves to define risk nicely.
Chart courtesy of Trading View