Another day done in our bitcoin price trading efforts is drawing to a close, and it’s been one that has been pretty good to us. We noted in our coverage this morning that the bitcoin price seemed to be settling down a bit, and that we we’re expecting some degree of sideways trading today, as price ranged into a consolidation period.
We set up a range that was capable of taking advantage of breakouts to both the up and the downside, and set up some relatively aggressive targets coupled with some tight risk management parameters. As it turns out, the strategy has served us well.
We saw the bitcoin price break through the upper level in our range mid afternoon, and price hasn’t really looked back since. We got in on the break, and managed to carry through to our predefined take profit without any suggestion of a reversal or a chop.
So, what does this mean for tonight?
Well, it brings 1300 into play as a potential near term target (we’re actually going to look beyond that level, as we’ll get to shortly), meaning we could be in for some fresh highs in the bitcoin price near term. Fresh highs make things interesting, as they usually generate a wave of extra attention (outside the space) that adds extra speculative capital to the equation, meaning we could see a real run soon.
So, let’s get to our key levels for this evening. Take a look at the chart below before we get started.
As the chart shows, the range we’ve got for tonight is defined by support to the downside at 1281, and resistance to the upside at 1290. If we see a close above 1290, we’ll be in towards 1305. Conversely, a close below support will put us in towards 1270.
Let’s see what happens.
Charts courtesy of SimpleFX