The week is about to draw to a close, and it’s time for the second of our twice-daily bitcoin price watch analyses. As we have done a few times already this week, let’s kick things off with a chart. The chart below is a 15-minute candlestick chart showing the last 24 hours worth of action in the bitcoin price, with the framework that we outlined this morning still overlaid.
As you can see, the range we outlined this morning was defined by in term support at 445 and in term resistance at 451. With about six dollars to play with, we said that we would look at implementing both our breakout and our intrarange strategies. As things turned out, only one of the strategies has been relevant. This was the breakout strategy, using which we entered long a little earlier on in the day towards 462 flat. Price remains around resistance, so the outcome of the trade is far from certain, but since we are in a position, we won’t be entering any fresh trades this evening until the current one expires.
For those that are not yet in a trade, however, the chart below shows our refined range, and some parameters that take into account the day’s movement in the bitcoin price.
As this second chart shows, where shifting resistance up to 452, and support up to 447. This makes things probably a little too tight to play intrarange, so we will be looking at a pure breakout approach this evening.
Specifically, if price breaks above resistance, we will look to enter long towards 460. This is quite an aggressive trade, giving us plenty of room for a stop loss – somewhere in the region of 449 works well. Looking short, a close below support signals short towards 442, with a stop at 449 defining risk.
Charts courtesy of Trading View