We are closing in on the end of the European session in the bitcoin price and it’s time to put together a strategy that we can use in an attempt to draw a profit from the market on any volatility as and when it plays out tonight. In this morning’s analysis, we said that we were looking for an upside break to validate some degree of bullish momentum near term. We did get the break but have subsequently seen price weaken somewhat and we are heading into the session this evening from a slightly depressed position as compared to our entry points early this morning.
With that said, however, the fact that we are seeing volatility is enough in and of itself to give us something to look forward to moving forward so, let’s get some levels in place. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand and where we are looking to jump in and out of the markets according to rules of our intraday strategy. The chart is a one-minute candlestick chart and it has our primary range overlaid in green.
As the chart shows, then, the range that we are looking at for the session this evening comes in as defined by support to the downside at 8570 resistance to the upside at 8636.
We are going to looking out for a close above resistance to validate a bullish entry towards an immediate upside target of 8750.
A stop loss on the trade somewhere in the region of 8600 flat will ensure that we are taken out of the position if and when things turn against us.
Looking the other way, if we see price close below support, we will enter short towards a downside target of 8500. A stop loss on this one in and around 8600, again, looks good from a risk management perspective.
Charts courtesy of Trading View
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