So that’s another day done in our bitcoin price trading efforts and we’ve had a pretty good one. As we noted this morning, volatility across the evening session brought price to trade a little bit lower than we might have liked, but not to the point that we could write off a near term reversal to the upside. We set up against the markets with a degree of flexibility, noting that we’d be ready to jump in on either side of price if and when our key levels broke and that we’d keep a tight risk management ship with some solid stop losses in place.
As is turns out, we did see a degree of initial weakness as the European morning played out but mid to late session the weakness reversed and price has been on something of an upside run during the few hours that comprise the early US session. This sort of crossover action isn’t unusual, as the volatility that we see with the added volume can often make a difference to overarching direction.
So where do things stand for tonight? Take a quick loo at the chart below before we get started to get an idea what’s on and where things stand for the session tonight. It’s a one-minute candlestick chart and it’s got our key range overlaid in red.
As the chart shows, the range we are using for the session tonight is defined by support to the downside at 3922 and resistance to the upside at 3962. If we see price break through support, we’ll look for a close below that level to validate an immediate entry towards a target of 3890. Conversely, a close above resistance will have us in long towards a downside target of 4000 flat.
Stops just the other side of entries, as usual, to keep risk defined.
Charts courtesy of Trading View