We’re going to kick off this analysis a little differently than normal. We are in a live trade based on an upside breakout a little earlier on today, and as such, our strategy dictates that we shouldn’t be looking to enter any further trades until this one resolves – be that through a stop loss hit or a target take out. The latter of the two is looking more likely as things stand, but as we’ve seen over the last few weeks in particular, the bitcoin price space can be fickle, and we can’t take it for granted that this one’s going to turn out a winner! The chart below shows the breakout and the trade we are currently in.
For tonight’s session, and for those not yet in a trade, we are going to tighten things up to the smaller time frame (just as we have been doing for the last week, and try and get into a few scalp entries on smaller, more restricted volatility. So, take a look at the chart below to get an idea of what’s on, and the tightened range we re looking at.
As the chart shows, the range comes in at in term support, as defined by 414.4, and in term resistance, as defined by 417 flat. As usual with our scalp entries, its pretty tight, so just the breakout strategy is in play this evening.
If the bitcoin price breaks, and closes above, in term resistance, we will look at a long position towards an immediate upside target of 420 flat. It’s a tight one, and a stop at 416 flat keeps things solid from a risk perspective.
To the downside, a close below support will signal short towards 412 flat. Again tight, and a stop at 415.5 protects our downside.
Charts courtesy of Trading View.