So the European session is about to draw to a close for the day on Tuesday, and it is time to take a look at what bitcoin price action gave us today and – in turn – how we can interpret this action and carry this interpretation forward as an actionable strategy tonight. In this morning’s bitcoin price analysis, we noted that rice had corrected from overnight (and week to date) highs, and that we could use this correction as a range parameter. Further, we said we would look to enter on a break of this range, towards some relatively tight but predefined targets. As things have turned out, we did get a break on the range (to the downside, as it happens) and this break came just a little earlier this afternoon. As such, we are still in a live trade, and won’t be looking to get into any further intraday trades until our current position matures – be that by way of a stop loss hit or a target take out.
This doesn’t mean we cannot look at the markets and set up a strategy to go at if and when our current trade closes down, however. So, with this said, here’s a look at how we are going to approach the markets this evening.
As the chart shows, we are going to lower our in term support slightly to take into account the fresh daily lows, and place it at 638 flat. In term resistance looks good for 650, giving us about a twelve dollar range to play with.
If price breaks through resistance, we will look to enter a long trade towards an initial upside target of 670 flat. A stop on this one at 654 defines risk. Conversely, of price breaks and closes below support, we will get in towards an initial downside target of 625.
Charts courtesy of Trading View