Overnight action in the bitcoin price has been pretty good to us. After what initially looked like it might be a pretty rough late US session (and, in turn, a cross over into the Japanese and European sessions this morning), things have turned around and the bulls are very much in control of price right now, around midday out of Europe.
For how long this will remain the case is uncertain, but so long as we are able to take advantage of both the upside momentum as it matures and any reversal if and when it comes about, it doesn’t really matter what direction things are moving in.
With this noted, then, let’s get some levels put in place that we can use to dictate our intraday strategy is the European session matures. As ever, take a quick look chart below before we get started so as to get an idea where things stand and how we intend to apply our strategy in response to any action we see in the bitcoin price moving forward. Again, as usual, the chart we’re using for the session is a one-minute candlestick cart and it has our key range overlaid in green.
So, as illustrated, we are going with a pretty clean range for the session today. Support comes in to the downside at 4217, while resistance sits around $30 higher, coming in at 4246. Note that we are running off the back of a pretty substantial upside run, so we will address the bullish trade first.
Specifically, if we get a close above resistance, we are going to jump into a long position towards an upside target of 4280. A stop loss at 4235 defines risk nicely. Conversely, a close below support will have us in short towards a downside target of 4180. A stop at 4228 on this one looks good.
Chart courtesy of Trading View