The European session has just kicked off in the bitcoin price and it’s looking as though we are in for some considerable volatility moving forward today and – ahead – into the close of the week. From its corrective lows way back down around the $6000 level late last week, bitcoin has staged something of a miraculous recovery and currently trades above the $7500 mark across the major exchanges.
This gives us a strong bullish bias going forward with a longer-term target in and around previous highs – circa $7900 apiece.
Before we look at those levels, however, we have a bit of intrarange action to navigate.
So, with that said, let’s get some levels in place that we can use to do exactly that. 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 during the session today. It is a one-minute candlestick chart and it has our range overlaid in green.
As the chart shows, the range we’re looking at for the session today comes in as defined by support to the downside at 7407 and resistance to the upside at 7538. We will initially look for a close above resistance to validate an upside entry towards a target of 7570. A stop loss on the trade somewhere in the region of 7525 will ensure we are taken out of the position if things turn against us.
Looking the other way, if we get a close below support, we will try and jump into a short trade towards a downside target of 7370. A stop loss on this one at 7420 looks like it should do the job from a risk management perspective.
Let’s see how things play out.
Charts courtesy of Trading View