In this morning’s analysis, we noted that things have been relatively flat so far this week (as they were over the weekend) and that – as a result – we were looking for some volatility during today’s session to get things moving for the week. Like we said before, it’s not really a problem if things are flat, but it makes for pretty dull strategy execution (and in turn, pretty dull reading for those who pay regular attention to this analysis). Well, the European session has now drawn to a close, and we got exactly the sort of volatility we were looking for. Around European lunchtime, the bitcoin price broke up and through our predefined resistance level, and continued its run right up to reach fresh intraday highs at 975. This the highest level we have seen in a while, and – looking slightly longer-term – brings 1,000 into play as a potential upside target. It’s not something we’re going to focus on this evening, but keep it in mind going forward this week. Looking at this evening’s session specifically, let’s try and outline some key levels, and see if we can continue to take advantage of further volatility.
As ever, take a quick look at the chart below to get an idea of where things stand.
As the chart shows, the range we are looking at this evening is defined by support to the downside at 960 and resistance to the upside at 975. If we see price break through the former, and close below support, we will enter short towards an immediate downside target of 950. A stop loss on the trade at 963 defines risk. Conversely, if price breaks above resistance, we will enter long towards 985. A stop loss on this one at 970 looks good.
Let’s see how things play out this evening, and hopefully we can continue to profit from the market going forward.
Charts courtesy of SimpleFX