So that is another day of trading complete out of Europe in our bitcoin price efforts and we have had another pretty solid session. In this morning’s analysis, we noted that the price was setting up for a breakout and that if we were able to get on the right side of this breakout it could be a nice opportunity to ride out the markets as they rebalanced post-correction.
To a certain degree, we got exactly what we were looking for. Price did break out early morning and we managed to jump into a long trade on the breakout, as outlined by our predefined entry points published this morning, and we exited when price hit our (also predefined) take profit.
Subsequent to our exit, however, things have settled down a bit and price has actually taken a bit of a hit to where it currently trades. Going forward, we are very much on the lookout for something similar to the action we played this morning.
So, let’s get some levels in place that we can use for tonight’s activity.
As ever, take a quick look at the chart below before we get started so as to get an idea of where things stand and where we are looking to get into the markets on any volatility. It is a one-minute candlestick chart and it has our key range overlaid in red.
As the chart shows, then, the range we are looking at for the session this evening comes in as defined by support to the downside at 4218 and resistance to the upside at 4258. We will look for a close above resistance to validate an upside entry towards 4275. Conversely, if we see price close below support, we will enter short towards a downside target of 4190. Stop losses on both positions will take us out of the trades if things turn around.