The Wednesday session is drawing to a close in Europe, and it’s time to take our second look at what the markets presented today, and in turn, use this action to put forward a potential trading strategy as we head into the US afternoon, and beyond that, into the Asian session this evening. In this morning’s bitcoin price analysis, the primary focus was a very tight range, which we said we would use to scalp the bitcoin price, on any breakout action. The range was only a few dollars wide, which left no room for an intrarange approach. Action has now matured across the session, so with this in mind, did we manage to get into a scalp trade, or did we get a repeat of last night’s action, whereby price remained well within the range we predefined? Take a quick look at the chart below to get an idea of what happened, and additionally, what we’re looking at in light of today’s action.
As the chart shows, we just recently broke through resistance, which put us in a long position towards an initial upside target of 449. We remain in this trade, and as such, won’t be looking to enter any further positions until this one results – be that either through a stop loss or a target hit. For those not already in a trade, however, fresh resistance comes in at the most recent swing high around 455, while support comes in at 453.75. These are the two lines that define this evening’s range.
Again, it’s an extremely tight range, so we will be looking at a breakout strategy only. Specifically, long on a close above resistance towards an upside target of 459, and short on a break below resistance towards 452.5. A stop loss on both just the side of the entry (no more than one dollar) defines risk nicely.
Charts courtesy of SimpleFX
Image via NewsBTC