It is time take a look at how action in the bitcoin price fared overnight in an attempt to try and figure out if we can use the action we have seen to try and put together a strategy for the European session today.
Instead of spending too much time discussing what just happened, it’s probably worth jumping straight into the chart for the purpose of this morning’s analysis because it’s looking as though we may get a near-term entry if things continue to move as they are doing right now.
So, with this noted, let’s get straight to it.
As ever, take a quick look at the chart below before we get started so as to get an idea where things stand right now. It is a one-minute candlestick chart and it has our primary range overlaid in green.
As the chart shows, the range that we are looking at for the session today comes in as defined by support to the downside at 10463 and resistance to the upside at 10706. If we see price close above resistance, we will enter long towards an immediate upside target of 10850. A stop loss on the trade somewhere in the region of 10675 will work to define risk nicely and will ensure that we are taken out of the position in the event that the price turns against us mid-trade.
Looking the other way, if price closes below support, we will jump in short towards a downside target of 10200. Again we need a stop loss on the position so somewhere in the region of 10485 looks good from a risk management perspective.
We will see how things play out during the European session today and we will revisit the markets later on this evening to try and adapt our strategy in the wake of any volatility.
Charts courtesy of Trading View