Things are drawing to close in the European session, and it’s time to perform our second analysis of the day in our bitcoin price watch strategy. In this morning’s analysis, we noted that price had been pretty volatile across the last couple of weeks, but has since slowed down a little bit, and that range bound trading was expected during today’s session. Further, we suggested that – in response to this range bound action – we would tighten up our parameters and look for scalp entries on any potential breakouts. Now action has matured, how did this strategy turnout, and did we get any of the breakouts we had hoped for? Let’s take a look.
As ever, before we get started, have a look at the chart below to get an idea of the range in focus and the targets that we are going for this evening. It is a 15 minute candlestick chart, with the range in question overlaid.
As the chart shows, the range we are focusing on this evening is defined by 626 to the downside as support, and 636 to the upside as resistance. We will be looking at our breakout strategy primarily (just as we did this morning). Specifically, if price breaks above resistance we will look to enter long towards an initial upside target of 645. Stop at 632 to keep our downside risk tight. Conversely, a close below support will signal a downside position, with a bearish target of 615 and a stop loss on the trade somewhere in the region of 629 defining our risk on the position.
If you are looking for a more aggressive entry, a bounce from support will signal long towards an upside target of resistance, with a stop loss just below current support to keep things tight from a risk management perspective.
Charts courtesy of Trading View