So that’s another day done in in our bitcoin price trading efforts, and – yet again – we’ve had a pretty interesting one. When we set up our key levels this morning, we were coming into the session off the back of a temporary correction, and we were able to pick up a couple of points on a bounce. This correction now looks finished, and we have a relatively straightforward range with which to go at price this evening. So, let’s get some levels outlined with which we can attempt to draw a profit from the market on any volatility tonight. As ever, take a quick look at the chart below to get an idea of what is on. It is a five-minute candlestick chart, and it has our key range overlaid in green.
As the chart shows, the range we are using this evening is defined by support to the downside at 1715 and resistance to the upside at 1738. There is just about enough room to go at things with an intrarange approach on this one, so we’ll be in long on a bounce from support and short on a correction from resistance. Target the opposing levels and stop losses just the other side of the entry levels (a couple of dollars either way) will ensure that we are taken out of the trade in the event of a bias reversal.
Looking at our breakout strategy, if we see price close above resistance, we will look to get into a long trade towards an immediate upside target of 1750. A stop loss on the trade at 1734 defines risk nicely. Looking the other way, a break below support will have us on the lookout for a close below that level, and if we see the close, we will enter short towards a downside target of 1720. On this one, a stop loss at 1740 looks good.
Chart courtesy of Trading View