6.6 Early Morning Silk Road

Looking back at yesterday's tug-of-war between bulls and bears, the pullback and rebound cycle played out, with both long and short positions bagged in the evening.

The four-hour Bitcoin chart shows a rebound off the lower Bollinger Band, with the bandwidth gradually opening up, indicating a buildup for a larger trend; the hourly chart shows a sideways movement around the middle band, with all three bands parallel, suggesting a short-term range.

Action:

In the early hours, trade Bitcoin with a short-term high sell low buy strategy, going long in the 104500-104000 range, with a stop loss at 103900 and a target of 106000-106300.

Ethereum is dominated by shorts, suppressing rebounds, with sporadic highs being reclaimed.

Action: Short near 2610, with a target of 2550.

Be sure to set take profit and stop loss levels to avoid spikes, trade lightly in this short-term range.