We are about to kick off a fresh session of trading in the bitcoin price and, unfortunately, we are starting the day on something of a low. That is, a low from a price perspective as opposed to anything else, but a low nonetheless. Action overnight was a little bit up and down but ultimately price moved into a period of sustained weakness early this morning and it doesn’t look as though markets are going to see any reprieve – at least near term.
Exactly how things will play out longer-term remains to be seen but, for now, or we can do is keep an eye out for any intraday volatility and try and play things as we see them.
So, with this in mind, let’s get down to the nitty-gritty.
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 chart and it has our primary range overlaid in green.
As the chart shows, the range we are looking at for the session today comes in as defined by support to the downside at 14437 and resistance to the upside at 14745. We will initially look out for a close above resistance to signal an upside entry. On this position, a target somewhere in the region of 14850 looks reasonable, while a stop loss in and around 14720 works well from a risk management perspective and will take us out of the trade if things turn against us.
Looking the way, the trade is effectively a mirror image of that outlined above. So, specifically, we will enter short on a close below support towards an immediate downside target of 14350. A stop loss on the trade at 14458 keeps our risk tight on the position.
Let’s see how things play out.