So that’s another day done in the bitcoin space, and we’ve had another good day. Things are really starting to pick up, and we’re getting a combination of high volume and sharp moves. We love sharp moves, as that’s where the breakouts come from, and we’re hoping to be able to get in and out of the markets according to the rules of our strategy as we move forward into the evening session (Europe) tonight.
So, with this in mind, let’s get moving.
As ever, take a quick look at the chart below to get an idea of where things stand from an intraday perspective. It’s got the last six hours or so worth of price action displayed, and we’ve annotated it with our key levels and range, highlighted in green.
As the chart shows, then, the range we’ve got in our sights for this evening is defined by support to the downside at 1428, while resistance for this evening comes into the upside at 1437. It’s not quite wide enough for an intrarange approach this time around, so we’ll be sticking with breakout entries for the time being.
So, here’s how we’ll approach it. If we see price break above resistance, we’ll look at getting into a long trade towards an immediate upside target of 1450. A stop loss on the position somewhere in the region of 1434 will ensure that we are taken out of the trade in the event of a bias reversal, and in doing so, will help us avoid getting on the wrong end of an irretrievable loss.
Looking the other way, a close below support will get us into a short position towards 1415. It’s a relatively aggressive position, and a stop loss at 1432 looks good on the trade.
Let’s see how things play out from here!
Charts courtesy of SimpleFX