We’re going to jump straight into our analysis today since the bitcoin price has been extremely active overnight and things are moving really fast during the early European session.
So, take a quick look at the chart before we get going so as to get caught up on where things stand and how the bitcoin price moved overnight to bring us to where things stand right now. It’s a one-minute candlestick chart and it’s got our key range overlaid in green.
As the chart shows, then, the range we are looking at for the session today comes in as defined by support to the downside at 4410 and resistance to the upside at 4435. This range is not wide enough for us to bring our intrarange strategy to the table, at least during the intraday session, so we’re going to stick with our breakout strategy for the time being and try to scalp any volatility as and when price moves.
With that noted, then, let’s look at some entries.
If we see price break above resistance, we’re going to watch out for a close above that level to get us in long towards an immediate upside target of 4460. A stop loss on the position somewhere in the region of 4425 will ensure we are taken out of the position in the event of price turning against us and returning to trade back within the above outlined range.
Conversely, and looking the other way, we’re going to look out for a close below support to get us in short. Our target on this one is at 4380 and, again, we need a stop loss in place to make sure that we are taken out in the event of a bias reversal. In this instance, a stop loss somewhere in the region of 4420 looks good.
Let’s see how things play out.
Charts courtesy of Trading View