Here we go then, fresh out of the weekend and off on another week’s worth of trading in the bitcoin price, Things over the weekend were pretty good to us. After an initial run down towards the end of the week, and what looked as though it might be the start of some longer term fundamental weakness, the bitcoin price picked up its act a little as the weekend progressed, and we saw a nice turnaround.
What this says about action moving forward remains to be seen. Things aren’t quite as clear as they were a week or so ago. There’s no discernible trend (on the shorter timeframes, that is) and this makes it al little more difficult than normal to set up against a particular frame of risk management parameters.
Difficult, but far from impossible.
So long as we are able to outline some reasonable signal levels, then we should be ok. So, with this in mind, take a quick look at the chart below to get an idea of what’s on this morning, and where we are looking to get in and out of the bitcoin price according to the rules of our intraday strategy. It’s a fifteen minute (slightly wider than normal) candlestick chart, and it’s got our range overlaid in green.
As the chart shows, the range we’re looking at defined by support to the downside at 1202 and resistance to the upside at 1215.
If we see a close above resistance, we’ll look at getting in long towards an immediate upside target of 1225. A stop at 1212 will define risk nicely. Looking short, a close below support will get us into a downside position towards 1190. A stop on this one somewhere in the region of 1206 will ensure that we are taken out of the position in the event that price reverses to trade against us.
Let’s see how things play out.
Charts courtesy of SimpleFX