In this morning’s analysis, we stated that we hoped for a bit of action during today’s session so we could get on short term volatility. We returned to our standard horizontal breakout strategy (as opposed to sticking with our technical pattern plays that we dabbled with on Wednesday and Thursday) and set up to get in on a break of support or resistance with a relatively tight target on each. We did manage to get into a long entry earlier on, but this quickly reversed and took out our stop loss on the position.
From there on out, the bitcoin price has traded relatively flat, but with a slight downside weighting, and we are going to have to shift our key levels a little bit if we want to take advantage of any volatility over the weekend.
So, with this in mind, let’s get to the details of how we are going to approach the bitcoin price during tonight’s US afternoon session, and beyond that into the Asian session early morning.
The chart below highlights our altered parameters, and shows the action seen during today’s European session.
As the chart shows, we are now looking at in term support to the downside at 562 flat, and in term resistance to the upside at 568. The range is slightly wider than the one we slated as being the range to watch earlier this morning, but still probably not wide enough to go at things with an intrarange strategy. As such, we will be focusing on the breakout approach only this evening.
If price breaks through in term support (which is looking likely) we will look to get in short towards an initial downside target of 555 flat. A stop at current levels defines risk (circa) 654).
A close above resistance will put us in towards an immediate upside target of 578. Stop at 566.
Charts courtesy of SimpleFX