This morning, we noted that in response to the pretty flat action seen in the bitcoin price over the last few days (which in turn is a response to the low volume based around US Independence Day), we’d tighten things up and go after a five-minute analysis, rather than our standard fifteen minutes. This didn’t really change our approach, the levels were pretty similar to those in focus for the week so far, but it did allow us to go at price with a slightly narrower focus. Why is this a good thing? Because it means we can go after some pretty tight targets – more scalp than breakout – without compromising our risk management. Action today has validated our approach, and we managed to get in for an (albeit tight) profit to the downside earlier on this afternoon.
With this in mind, we’re going to reuse this approach this evening. Our levels will be slightly altered, of course, as price has moved, but from a scale point of view, this evening’s strategy is going to be pretty much identical to this morning’s. That is, no intrarange (there’s just not enough room to justify the risk reward ratio), and a focus on breakout scalps.
So, as we move into the Asian session this evening, here’s what we are going at.
The chart below shows the last 24 hours’ worth of action on a five-minute timeframe.
As the chart shows, the range in focus for this evening is defined by in term support to the downside at 666 flat, and in term resistance to the upside at 676. Ten dollars, pretty tight.
A close below the former will signal short towards an initial downside target of 655. Stop at 669. Conversely, a break and close above the latter will signal an upside entry towards 682. Stop at 673.
There we go! Let’s see how things play out. Happy Trading!
Charts courtesy of Trading View