Things have been a little quiet in the bitcoin price this week, and we’ve not had too many opportunities to enter on our breakout strategy. However, overnight on Wednesday, we did get a little bit of movement, and this movement allowed us to shuffle our parameters around a bit. We narrowed our time frame last night to the five-minute chart, and combined with the movement seen in the markets, this enabled us to get in short on a downside break. We remain in this trade as things stand, but it’s a narrow frame trade, meaning we can get in to a secondary wider time frame trade on any volatility this evening without breaking our strategy rules.
With this in mind, here’s a look at the levels we are focusing on this evening, and a description of how we intend to get in and out of the markets on any such volatility. The chart below highlights the range in focus, so take a quick look at that before we get going with the specifics. It’s a fifteen-minute candlestick chart illustrating the last forty-eight hours or so of action in the bitcoin price.
As the chart shows, the range we are looking at this evening is defined by in term support at 418 flat to the downside and in term resistance to the upside at 421.5. It’s pretty tight, so we’ll stick with our breakout and sideline intrarange – at least for now.
We’re trading just shy of in term resistance at the moment, so we’ll look at the upside first.
A close above in term support will signal a long entry towards an initial upside target of 425 flat. A stop on the trade at 420 defines risk.
Looking short, a close below support will signal a bearish trade towards 414 flat. Again a stop is necessary, and somewhere in the region of 419.5 looks attractive.
Charts courtesy of Trading View.