We are heading into the midway point of Wednesday’s European session, and action has been pretty volatile overnight. Over the past couple of weeks, we have seen a few up and down movements, primarily during the Asian session on Chinese volume. The European sessions have been relatively quiet. This trend seems to have bucked, however, with the advent of some volatility early this week, and so we are approaching each session with the opinion that we could get some intraday movement and, in turn, some decent entries. So, with this said, and as we head into a fresh afternoon’s trading, here’s what we are looking at in the bitcoin price, alongside a discussion of our risk parameters. As always, take a quick look at the chart to get an idea of the key levels.
As you see, action throughout last night’s Asian session saw price range from overnight lows at 348.59 and the most recent swing high at 356.58. These two levels will serve as in term support and in term resistance respectively for today’s European afternoon. We’re currently trading mid-range, but as part of the overarching overnight trend, we will initially look at the downside entry. If we can get a break below 348.59 (and a close below this level) it would put us short towards a medium-term downside target of 340 flat. A stop loss on this one somewhere around 351 will keep things tight from a risk management perspective.
Looking the other way, a run past 356.58 to the upside would carve out fresh daily highs, and would give us a medium-term bullish bias in the market. A close above resistance will put us long towards 365.84, with a stop loss somewhere around 354 defining our risk nicely.
