Okay. Action overnight played out pretty much as we hoped it would in the bitcoin price. From what was a relatively muted start to the week, things started to pick up during the late evening session on Monday, and price looked as though it was going to break through the 1000 mark and get running to the upside once again. We did eventually get this break, but nothing more than a spike through it, and we are currently trading at or around this level right now. It means that we can use 1000 as a key level during today’s session, so with any luck, we should be able to get into a long entry on a break of said level and look to it then starting to form a floor, as opposed to a ceiling.
Anyway, that is all future action. Before the session kicks off, let’s take a look at what we’re going for this morning, and where we are looking to get in and out of the markets according to our intraday strategy as things play out. As ever, take a quick look at the chart below to get an idea of what is on, and where we are focusing.
As the chart shows, the range in focus for today’s early morning European session is defined by support to the downside at 987, and resistance to the upside at 1000. Price is pretty much trading at resistance right now, so let’s address this trade first. If we see a break above 1000, we will look for a close above this level to put us in long towards an immediate upside target of 1010. A stop loss on the trade at 997 defines risk. Conversely, a close below support will signal a short entry towards a downside target of 978. On this one, a stop loss at 990 defines risk nicely.
Charts courtesy of SimpleFX