So that’s it for the end of the day – markets are drawing to a close out of Europe and our European session bitcoin price trading is shifting to the late US session. In this morning’s analysis, we widened things out a little bit, and put forward a pretty large range to go forward into the European morning session with. This is very much still in place – we haven’t managed to get into any trades on this range as yet (this isn’t unexpected, the wider ranges need a little bit more time to play out) but that doesn’t mean we can’t set up a narrow range and go at price with this narrow range as a secondary approach.
So, that’s what we are going to discuss now.
Before we get started, take a quick look at the chart below to get an idea of how action played out today (spoiler: range trading) and our range this evening. We’ve shifted back to our five-minute charge for this evening, and our range in focus is overlaid in green on the chart.
As the chart shows, the range we are now looking at is defined by in term support to the downside at 605 flat, and resistance to the upside at 610 flat. If price breaks below the former, we are going to look at getting in a short position with an immediate downside target of 600 flat. A stop on this one somewhere in the region of 607 looks good from a risk management perspective, and will ensure we are taken out of the trade in the event of a bias reversal.
Looking the other way, if price can break above, and close above, resistance at 610, we will get in to a long position towards 615. Again we need a stop, and 608 works well on this one.
Charts courtesy of SimpleFX