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The session has now drawn to a close in Europe, and it’s time to take a look at how action played out today in the bitcoin price. We wanted to get in on some decent volatility, and action over the last week or so has given us exactly what we wanted (aside form a bit of a chop out yesterday). Did this continue today? In a word, no. Price traded to the downside for the majority of the day, but never really established any sustained momentum. We hit support just recently, and this has us on the lookout for a potential long entry in line with our intrarange strategy rules, but we’ve not seen an overly convincing bounce, so for now that’s on hold.
So that’s where things stand, how does this play into tonight’s approach? Well, let’s try and figure that out. First up, take a look at the chart below to get an idea of the range we are looking at this evening.
The chart is the same one we looked at this morning, albeit with the maturation of price action throughout today’s European session.
As the chart shows, since price has failed to break (as in, break and close the other side of) either of our key levels, we are going to hold this morning’s range in place for tonight’s Asian session. Specifically, we’ve got in term support holding firm at 666 flat, and in term resistance to the upside at 682.
We’ve mentioned intrarange, bit to reiterate, if we get a solid bounce from current levels we will look to enter long towards 682 resistance.
From a breakout perspective, if price closes below support, we will enter short towards an initial downside target of 650 flat. A stop on this trade somewhere in the region of 670 flat defines risk pretty nicely.
Charts courtesy of SimpleFX
