So we’ve come to the end of yet another week’s intraday trading in the bitcoin price space, and it’s been a pretty interesting one. We’ve had breakouts on our traditional ranges, some scalp entries, and some not particularly fond memories of quick stop hits. In yesterday’s second analysis, we discussed the fact that we were shifting to the narrower timeframe, and in turn, the narrower range, in an attempt to pick up a quick profit from some overnight volatility. We set our parameters (targets and risk were both pretty tight) and left things to mature overnight. Mature they did, and we ended up with a great entry on an upside break, and a target hit relatively soon after the position filled. The chart below illustrates the trade.
With this overnight action looking bullish, we may see some bullish momentum moving into the weekend, which would be great from a long term holding perspective. Things have been pretty bearish over the past couple of weeks, so an opportunity to add some organic value to a capital collection would be a bonus, and can act as a nice hedge against any downside intraday trades we set. This, of course, is out of our control. What’s well within our control, however, are the levels at which we look at getting in to trades today – specifically, throughout the European morning session.
The chart below illustrates today’s range.
As you can see, in term support sits at 417.5, while in term resistance comes in at 421 flat. We’re going to be trading a pure breakout strategy today, so intrarange goes by the wayside for now.
Looking at entries – long on a close above resistance towards an upside target of 425 flat. A stop on this one somewhere around 419.5 defines risk.
To the downside, a close below support will initiate a run towards a bearish target of 413 flat. Stop at 419 to keep things tight.
Charts courtesy of Trading View