Earlier this morning, we published the first of our twice daily bitcoin price analyses. We forecasted that, in light of the sideways action we had seen during the twenty-four hours directly preceding our snapshot, we could see either the bulls or the bears take control of the intraday swing, and in turn, some decent volatility from which we could draw a profit under the framework of our breakout strategy.
Action has now matured throughout the day, and we are about to head into the US afternoon session and – beyond that – the Asian session later on tonight. So, what did today’s action tell us, and where are we looking to get in and out tonight? Get a quick look at the chart below to see what’s on.
As the chart shows, action throughout today’s session gave us the break we were looking for, and we were able to get in for a nice quick profit on the short side of our range.
In light of this, we are looking at a new range defined by in term support at 411 flat, and in term resistance to the upside at 415.43. This morning we noted that the range in focus gave us just enough room to bring an intrarange strategy to the table – something we’ve not done in a while – but/and today’s action means we can/cannot do the same this evening.
So, long at support, short at resistance. Stops, as usual, just the other side of the entry to define risk.
Looking at breakouts, a break above resistance signals long, with a stop at 412 defining the risk on the position. A target at 424 gives us a nice risk to reward profile. Conversely, a close below support will signal short toward a downside target of 407, and a stop at 413 keeps things tight from a risk management perspective.
Charts courtesy of Trading View