Its Thursday morning, and the week has flown by so far. We’ve not had too much luck from an intraday perspective in our bitcoin price, and for the first time in a long time could be looking at heading into the final session of the week net down on the markets. That is, if we don’t manage to pull a profit from the market today. Things are pretty tight, and it looks as though we are going to have be aggressive in our target placement for today’s session if we are to bring things home on a positive note.
Stepping back a minute and looking at the bitcoin price from a bit of a wider timeframe, price has stayed within what has been a remarkably tight range for the last few weeks. It’s almost a sort of stabilization. How long it’s going to last remains to be seen, but it sure makes for some frustrating intrarange trading. There’s essentially no breakout sustainability on the volatility we are seeing, and this is translating to some chop outs.
Anyway, there’s nothing we can do about that. All we can do is respond to action as it plays out.
As it happens, as we write this analysis, action has given us a nice opportunity to get in short on the five-minute chart. Take a quick look at it below before we get started.
As the chart shows, we predefined in term support and resistance at 572 flat to the downside at 577 flat to the upside respectively. Price just broke through support, so we are in a short position towards 565 flat. We’ve got a stop loss at 474 defining our risk on the position.
If price returns to trade within range, and takes out our stop loss, we will revert our range and look to enter short once more as described above, and long on a close above resistance towards 585.
Let’s see what happens…
Charts courtesy of SimpleFX
