We are closing in on the end of the European session on Wednesday and price is trading in and around the top of its 24-hour range. Oftentimes, we spent quite a bit of time looking at how action during the day brought things to stand as they currently do but, right now, we are going to jump straight into our analysis in an attempt to avoid missing out on any potential entries near term.
So, with this in mind, 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. The chart is a one-minute candlestick chocolate has our primary range overlaid in green.
As the chart shows, the range that we are looking at for the session this evening comes in as defined by support the downside at 8150 and resistance to the upside at 8350.
We are going to stick with our standard breakout strategy for the time being, so we will shelf our intrarange strategy near term. If this changes going forward (or, in other words, if we get the sort of conditions that allow us to enter and exit intrarange trades in the bitcoin price overnight), we will alter our strategy slightly.
So, as an initial trade, we will look to enter long on a close above resistance towards an immediate upside target of 8600 flat. A stop loss on the trade somewhere in the region of 8275 works well from a risk management perspective.
Looking the other way, if we see price close below support, we will enter short towards a downside target of 8000 flat. Again we need a stop loss on the position and somewhere in the region of 8200 looks like it should do the trick.
Let’s see how things play out and we will revisit in the morning.
charts courtesy of Trading View