It’s early Wednesday morning, and about time for the first of our twice-daily bitcoin price watch analyses. During yesterday’s session, we got some pretty sharp movements, and managed to enter short according to our breakout strategy on the upward sloping triangle. The trade closed out for profit shortly before markets closed in Europe, giving us a clean slate with which to enter the evening session out of the US and, beyond that, Asia.
Action has now matured overnight, and so, as we get into a fresh European session this morning, what are the levels we are focusing on, and where we will look to get in and out of the markets according to our various intraday strategies? As ever, take a look at the chart below to get an idea of what we are watching. It’s an intraday candlestick chart showing the last 24 hours’ worth of action on a 15 minute time frame.
As the chart shows, we are looking at support of 447 to the downside and resistance at 453 to the upside. We’ve got a six dollar range, and as such, it’s just enough to trade intrarange, so long at support and short at resistance, with a stop loss just the other side of the entry to ensure we are taken out of the trade in the event of a bias reversal.
With the breakout approach, we will look to enter long on a close above 453, with a stop loss at 451 and a target of 459 as an initial upside goal. On the short side of the strategy, a close below support at 447 will signal a downside entry towards an immediate downside target of 442. Again a stop loss is necessary, and somewhere in the region of 450 flat works to keep things tight from a risk management perspective.
Charts courtesy of SimpleFX
Image via NewsBTC