Over the last couple of days, action in the bitcoin price has been relatively flat. We have seen the odd bit of choppy momentum here and there, but nothing sustainable, and this has made it difficult for us to get in and out the markets and draw profits according to our standard intraday breakout strategy. With this in mind, and as we head into the fresh days trading in Europe on Wednesday, we’re going to shuffle things around a bit. Specifically, we’re going to tighten in our intraday range, and use what amounts to a few dollars worth of spread to scalp the markets. First up, and to get an idea of the levels where focusing on initially, take a look at the chart below. It’s an intraday, 15-minute time frame candlestick chart showing action across the last 24 hours or so.
As the chart shows, action was open down overnight, but nothing worth writing home about. Where currently trading midrange between a tight scope range of support to the downside of 452.23, and resistance to the upside of 454.91. As we’ve said, this is only about a three-dollar range, so we will be focusing purely on breakout for today’s scalping (as opposed to break out and intrarange). Why? Because the intrarange trades available to us don’t offer enough room to restrict our risk to anything attractive.
So, getting to the actionable strategy, a break and a close below supports signals a short entry towards 449. We need a tight stop loss on this trade, since it is a scalp trade, and somewhere in the region of 453 looks like it will work nicely.
Looking long, if price breaks and closes above resistance, we will look to enter along towards 458 flat. a stop loss on this one around 454 is tight, but looks to keep things attractive from a risk management perspective.
Charts courtesy of SimpleFX