This morning’s article was a bit of a speculative approach to the bitcoin price. We saw a bit of movement over the weekend, and had hoped that this movement might continue throughout the Monday session in Europe and – in turn – that we could get in for either a quick scalp profit or an intrarange play. Things haven’t quite gone to plan. We got in a little earlier on for a long entry on a breakout – a close through resistance to be specific, and aimed to get out at a take profit around $8-9 above our entry. Unfortunately, shortly after we got in to the markets, price reversed on us and we were taken out of the trade for a stop loss hit. We are now in a position to revise our range, and hopefully go at the markets with a little more success this evening.
With this said let’s get down to the detail. We are looking at the range described in the chart below, so get a good look at that before we get started. It’s an intraday candlestick chart showing the last 24 hours’ worth of action on a five-minute timeframe.
As the chart shows, the revised range we are looking at for this evening’s session is defined by in term support to the downside at 582, and in term resistance to the upside at 589. It’s a very similar range to the one we outlined this morning, but just shifted up a little to accommodate the false breakout.
We are going to be looking at entering long on a close above in term support, with an initial upside target at 597. A stop on the trade somewhere in the region of 586 works well to define risk.
Conversely, if we see price close below support, we will get in towards 573 with a stop at 585.
Charts courtesy of SimpleFX