Over the weekend, and as we headed into the beginning this week, the bitcoin price looked as though it was in for some sustained weakness. A sharp decline in the Sunday session initiated what we thought might be the beginnings of a longer-term downtrend, and we set up short accordingly. As things turned out, even though we did manage to draw a couple of short side profits from the market, Tuesday’s session brought us something of a recovery, and the price looks to now have a medium term upside bias.
The overnight action continued the upside trend, and having ridden support along an upward sloping channel line; we’re about to head into a fresh session with a nice profit overnight.
So, now that our live trades have matured and as we head into the Wednesday morning session of Europe, what are we looking at the bitcoin price, and where are we looking to get in and out of the markets according to our intraday strategies? Take a quick look at the chart below to get an idea of the levels we are focusing on. It’s an intraday candlestick chart with a 15-minute time frame.
As the chart shows, we’re looking at in term support at 448, and in term resistance to the upside at 452. It’s not that wide a range, but for those looking to trade intra, long at support and short at resistance works as an aggressive entry strategy.
From a breakout perspective, we are looking to enter long on a close above resistance, with an initial upside target of 457. A stop loss on this one somewhere in the region of 450.5 keeps things tight from a risk management perspective.
Looking the other way, if price breaks and closes below 448, it will signal short towards 443. Again a stop is necessary, and somewhere in the region of 449 works well on the position.
Charts courtesy Trading View
Header Image: NewsBTC