We’ve spent the last week or so wishing for some volatility in the bitcoin price, and today we finally got some during the European session. Having outlined a triangle pattern earlier this morning, we set up against both sides of the market with the intention of getting in on the break of the triangle’s parameters. Initially, we got chopped out of an upside trade on what turned out to be a false break. Almost immediately, however, we got an opportunity to get in again, this time to the downside with the momentum that saw our stop hit, and we carried through to our short side target relatively quickly. From this target hit, price recovered, and we saw some upside action we we traded intrarange, and managed to sneak out a secondary scalp profit with our secondary strategy. We now trade mid range between some slightly altered key levels (with a slight downside bias) and are looking to get into another couple of trades as the European session closes out and the US afternoon kicks off. So, with that said, and as we head into the US afternoon and beyond into the Asian session tonight, here’s what we are going for.
Take a look at the chart below to get an idea of our key levels.
As the chart shows, we are looking at support to the downside at 556 and resistance to the upside at 567. We’re going to revert back to our breakout strategy, so we will initially look for a break below (and a close below) in term support to put us short towards 550 flat. A stop at 559 defines risk.
Conversely, if price breaks above resistance, we will go in long towards 572. A stop on this one somewhere in the region of 565 keeps our risk tight and still gives us a little bit of wriggle room on the position.
Charts courtesy if SimpleFX