It’s been a pretty slow day in the bitcoin price space, and this has weighed on our ability to get into the markets. We had a pretty volatile end to last week, and some decent action over the weekend allowed us to draw some profit from a few positions, but the current action looks to be representative of the start of the week slumps we’ve seen across the last couple of months – range bound, no real breakouts, and when we do see a breakout, it doesn’t result in any sort of sustained momentum we can take advantage of. With this said, however, our framework is designed to be ready when we do get a return to volatility, and we can also bring our intrarange strategy in to play in an attempt to get in and out on some real short term range bound scalps. So, here goes. The chart below shows the range we are watching tonight.
As you can see, we are looking at in term support at 416 flat to the downside, and in term resistance at 419.5 to the upside. It’s a pretty tight range, but we’ll bring intrarange to the table nonetheless. As usual, a short entry on a correction from resistance, and a long entry on a bounce from support, with a stop loss just the other side of the key levels in question to maintain a positive risk reward profile on the trade.
Looking at breakout, a close above resistance will signal a long entry towards an initial upside target of 425. For the more aggressive trader, 427 is a possible secondary goal. A stop loss on this one somewhere around 418 flat looks good.
To the downside, a close below support will signal short towards 410 flat, and a stop loss at 417.5 keeps things tight from a risk management perspective.
Charts courtesy of Trading View