Action in the bitcoin price has matured across the European session, and hasn’t quite played out in our favor. That is, at least, from a long term holding perspective. Shorter term, we saw a decent amount of volatility, and managed to get in to a trade according to our predefined breakout strategy a little earlier on this afternoon. That position has now closed, and with it, the European session is about to draw to a concurrent close.
So as we head into a fresh afternoon out of the US, and as action matures beyond this into the Asian session tonight, here’s a look at what we are targeting. Specifically, a look at our predefined range on the bitcoin price, and a description of how we intend to go at the markets if we get a reproduction of today’s volatility. The chart below is a fifteen-minute candlestick chart showing the last forty eight hours or so worth of action in the bitcoin price. Get a look at it before we get going with our analysis so the levels in question make sense.
As the chart shows, the range we are focusing on for this evening’s session is defined by in term support to the downside at 573 and in term resistance to the upside at 584. Just as with this morning’s session, we’ve got plenty of room to go at the market from an intrarange perspective, so long at support and short at resistance, stop just the other side of the position entry to define risk.
If action offers up any volatility that we can approach on a breakout trade, long on a close above resistance, with a target of 590 flat. Short on a close below support with a target of 565. Stop losses again just the other side of the entry to ensure we are taken out of the trade if price reverses.
Charts courtesy of Trading View