The end of the European session has arrived and it’s time to take a second look at the action we’ve seen in the bitcoin price throughout the day and, in turn, to get some levels put in place that we can use to hopefully draw a profit from the market moving forward.
Action today has been pretty volatile, with the bitcoin price now trading a little down on the price that we were looking at this morning. Not substantially, but worth noting nonetheless.
So, let’s get a strategy put together for tonight.
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 are looking to jump in and out of the markets as and when things move. 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 tonight comes in as defined by support to the downside at 5655 and resistance to the upside at 5684. This is a pretty tight range, so we’re going to stick with our breakout strategy for the time being. If things widen out a bit, we’ll think about bringing our intrarange strategy into play, but not yet.
So, if we see price break above resistance, we’ll look for a close above that level to validate an immediate upside entry towards a target of 5710. A stop loss on the trade somewhere in the region of 5675 will ensure we are taken out of the trade for just a small loss if things reverse against us.
Looking the other way, a close below support will signal a short entry towards a downside target of 5610. A stop on this one at 5665 looks good from a risk management perspective.
Charts courtesy of Trading View