So that’s another day done in the bitcoin price markets, and the time has come for us to take stock of action throughout the day and see where we can use this action in tonight’s strategy. Things got a little slow overnight, and those that read this morning’s analysis will be aware that we used some slightly longer term levels to set up against the markets this morning, in anticipation of waiting out price action a little bit until we saw some volatility and – more importantly, we got some action we could trade on a breakout.
So, with this in mind, and moving forward in to tonight’s session, let’s take a look at what we are going for, and where we are aiming to get in and out of the markets according to our intraday strategy this evening.
As always, take a quick look at the chart below to get an idea of what is on and where we are looking to place our key levels. It’s a five-minute candlestick chart with our range in focus overlaid.
As the chart shows, the range we are targeting is defined by in term support to the downside at 626 and in term resistance to the upside at 632. Price did exactly what we wanted it to, and broke through our support today to allow us in for a nice short term downside profit.
Now with these two levels, we are going to look for a close above resistance to validate an immediate upside target of 638, and conversely, a close below support to put us short towards 620 flat. A stop loss on both positions just the other side of the entry will ensure that we are taken out of the trade in the event of a bias reversal.
Let’s see how things play out…
Charts courtesy of SimpleFX