We knew a correction was coming and we knew that it would likely be somewhat substantial, but we didn’t know when it would hit. This week, it looks like we’ve got what we expected. The bitcoin price trading at a circa 10% discount to highs from last week and we are currently in some sort of a consolidation phase, with price trying to find its footing and, in turn, trying to stage a recovery.
Exactly how long any recovery might take remains to be seen. Things are moving pretty fast fundamental right now and this should help to bring some buyers into the market at current prices. However, it’s when price declines that we also see some sellers opt out and this can compound any downside momentum and draw out a correction.
With action as it is right now, we are going to tighten our range up and try to scalp the markets until price finds a direction. So, let’s do just that. As ever, take a quick look at the chart below before we get started to get an idea of where things stand and where we are looking to get in and out of the markets according to the rules of our intraday strategy. It is a one-minute candlestick chart and it has our range overlaid in red.
As the chart shows, the range we are looking at for the session today comes in as defined by support to the downside at 4227 and resistance to the upside 4270. We will initially look for a close above resistance to validate an upside scalp target of 4300 flat. A stop loss on this one at 4260 looks good. Looking the other way, a close below support will signal a short entry towards 4200. On this one, a stop loss at 4235 defines risk nicely.