For the session today, we are going to jump straight into our analysis because the bitcoin price seems to be moving pretty fast and we don’t want to miss out on an entry opportunity ahead of the morning start in Europe. With this in mind, and as an alternative to our usual rambling on about what happened overnight, take a look at the chart below to get an idea of what happened last night and where things stand as we kick off the session this morning. As ever, it is a one-minute candlestick chart and it has our key range overlaid in blue.
As the chart shows, the range we have got in our sights for this morning is defined by support to the downside at 2524 and resistance to the upside at 2539. Compared to some of the ranges we have used over the last few weeks, these are pretty tight parameters. This is intentional. We want to make sure that we can get in on even choppy volatility this morning, as price is moving fast and we expect some level of sustained momentum as and when we get a signal entry.
We are going to use just our breakout strategy for the time being. Intrarange is probably acceptable, just about, but when we have a tight range like this, it can make setting risk management parameters a little difficult. In order to keep things simple this morning, then, we are shelving intrarange for the time being.
If things change a little later on, we will update.
So, we will be getting in long on a close above resistance towards an upside target of 2552. A stop loss on the trade somewhere in the region of 2532 will ensure that we are taken out the position in the event of a bias reversal.
Looking short, a close below support will have us in towards 2500 flat. On this one, a stop loss at 2530 looks good.
Chart courtesy of Trading View
