Bitcoin Price Watch; Winding up for Action!

To say action overnight had been erratic would be an understatement. The chart we are using for today’s analysis doesn’t represent the erraticism perfectly, as it’s a contracted version, but the up and down volatility across the board in the bitcoin price was there nonetheless. We didn’t see too much sustained directional movement. But within a pretty tight range the bitcoin price jumped around, never really offering us any real entries (even on the tightened scalp platform we outlined yesterday afternoon).

We start the day a little down on yesterday’s open, but nothing substantial, and not any where near enough to suggest an overarching bearish bias. With this in mind, we’re going to bring a breakout and an intrarange strategy to the table for this morning’s European session, in an attempt to draw some intraday profit from the market.

Get a quick look at the chart below to get an idea of the levels we are watching and the action to this point. It’s an intraday, 15-minute candlestick chart across circa 48 hours’ worth of action.

Screen Shot 2016-03-09 at 09.58.26

As you can see from the chart the range that will define today’s trading enclosed by in term support at 408 flat and in term resistance at 413. Its about a five-dollar range, which is just enough for some tight intrarange play. This said, long at support and short at resistance, on a bounce an correction respectively. Stops just the other side of the entry levels to protect the downside.

A close above resistance will signal a long trade. On this range, this signal will put us long towards a pretty tight upside target of 417 flat. A tight stop is going to be necessary, and somewhere around 411.5 looks good.

Conversely, a close below support will signal short towards an equally tight target of 405 flat. A stop on this one at 410 defines risk nicely.

Charts courtesy of Trading View

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