The bitcoin price is just about managing to hold above the 1000 level we noted this morning as the level to keep an eye on to the downside. It looks as though we may see some more downside action this evening, but as we always say, it’s tough to say this with any certainty. Especially, that is, against a backdrop of fundamental uncertainty surrounding the future form of the blockchain.
Anyway, we can use what we’ve seen today to put together a range to go at near term, and really, for now at least, that’s all that matters.
So, let’s get to it. Take a look at the chart below to get an idea of what we’re looking at this evening, and where we’re going to try and get in and out of the markets according to the rules of our intraday strategy on the back of any volatility.
It’s a five-minute candlestick chart, and it’s got our key range overlaid in green.
As the chart shows, the range that defines our strategy going forward into this evening’s session comes in as outlined by support to the downside at 1019, and resistance to the upside at 1030. This is a little wider than we’d normally like, but the swing high/low action of late necessitates a wider range, so there’s not too much we can do about it.
It means we can use an intrarange strategy as well as a breakout approach, so that’s a bonus.
Looking at our breakout strategy, if we see a close above resistance, we’re going to look at getting in long towards an immediate upside target of 1045. Looking the other way, if price breaks below, and then closes below, support, we’re going to go in to a short towards and target 1005 to the downside.
Let’s see what happens.
Charts courtesy of SimpleFX