Action in the bitcoin price today has been relatively lackluster today, once again. We managed to get in a little earlier on a breakout scalp trade, but apart from that, things have been pretty flat. We’re heading into this evening’s session with some degree of optimism, however, based on the expectation of a volume boost come the late US session. Whether this will actually play out, who knows. If it does, we’re going to be ready. If it doesn’t, no worries. We’ve had a reasonable week and we’re going to close out net up on the markets (assuming nothing terrible happens this evening, that is!) so we’ll set up against the markets and see what happens.
As ever, take a look at the chart below to get an idea of the levels in focus. It’s a five minute candlestick chart showing the last twelve hours’ worth of action in the bitcoin price, and it’s got our key levels highlighted in green.
As the chart shows, then, we are looking at a range defined by in term support to the downside at 923 and in term resistance to the upside at 929. With about six dollars’ worth of range available, we’ve not got enough room to go at price with an intrarange approach, so we’ll be looking to trade our breakout strategy only this evening.
For our breakout entries, then, we will look for a close above resistance to give us an excuse to get in long, and we’ll go after an immediate upside target of 938. A stop on this one somewhere in the region of 926 kills off risk on the trade.
Conversely, a close below support will signal short towards 914, and we’ll use a stop loss around 925 to ensure 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