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We are now approaching the end of the European session in our bitcoin price trading efforts and it’s time to take a look at how action during the day today has played out as compares to the framework we put in place this morning and, in turn, to try and alter said framework in an attempt to draw advantage from any further volatility we get this evening. We are going to jump right into the action today, so take a quick look at the chart below before we get started so as to get an idea what’s on right now and where things stand in the bitcoin price.
It’s worth noting quickly that the Tether hack has translated to some temporarily weakened sentiment and this could – in turn – translate to some volatility in the space. Longer-term, we don’t expect it to have any real impact, but we’ve got to keep it in mind right now.
So, with that said, let’s get the detail.
The chart is a one-minute candlestick chart and it has our key range overlaid in green.
As the chart shows, the range we’re looking at for the session this evening comes in as defined by support to the downside at 8250 and resistance to the upside at 8317. This is a relatively tight range, so we will stick to our breakout strategy for the time being. If this changes, we will update later on.
Looking at our strategy, then, if we see price break above resistance, we will watch out for a close above that level to validate an upside target of 8375. A stop loss on the trade somewhere in the region of 8300 will limit risk nicely.
Looking the other way, if we see a close below support, we will jump in short towards a downside target of 8200. A stop loss on this one at 8265 looks good.
Charts courtesy of Trading View