We’ve seen some pretty solid patterns this week in the bitcoin price. The weekend action offered up a nice sharp movement – one that we managed to take advantage of and draw a quick profit from the market. We then noted that – as a hypothesis based on the consolidation we saw post-break – we could be in for another sharp move when markets finally picked up a directional bias. Again, we got this move during yesterday’s session, with a sharp downside break offering us another opportunity to pick up an entry based on the framework of our standard breakout strategy. Which brings us to today – and once again, we’ve seen some consolidation overnight.
A small, but short lived, downside break gave us something to consider just before market open today, but we stayed out of the markets and now have a nice range outlined – one from which we can look to get in and out if the consolidation/break pattern plays out again.
So, with this in mind, what are we looking to trade for today’s European morning session, and where does action suggest we should look to limit our risk and reward? Take a quick look at the chart below to get an idea of what we are watching.
As the chart shows, the day’s bitcoin price range is defined by in term support at 411.5, and in term resistance at 416 flat. It’s not quite a wide enough range to bring intrarange into play, so we’ll be sticking with just our breakout approach this morning.
As usual, an upside entry will signal when price breaks above in term resistance, and we’ll enter on the close towards an upside target of 422 flat. A stop on the trade at 414 flat defines risk.
Looking to the short side, a break below support will signal an entry towards 405, and a stop on this one somewhere in the region of 413.5 protects our downside.
Charts courtesy of Trading View