Analysis Bitcoin

Bitcoin Price Watch; Irregular Action Dominates

Samuel Rae | May 31, 2017 | 10:00 am

Bitcoin Price Watch; Irregular Action Dominates

Samuel Rae | May 31, 2017 | 10:00 am

And we live to trade another day in the bitcoin price space. Things have been pretty volatile this week so far. With over-the-weekend-action dominated by a correction and subsequent to the correction a relatively flat period of consolidation, putting together a forward strategy early week was a little tough. Not because we didn’t know what’s coming (we never know what’s coming really) but because the volatility we’d seen translated to some pretty wide key levels. When things stay active, wide parameters are fine. As price settles, however, they become relatively redundant. Why? Because we just see continued range bound action and – by proxy – don’t have the opportunity to get in and out of the market on any breakouts.

Sure. We’ve got our intrarange strategy in our back pocket for when this sort of action dominates, but even that isn’t overly effective when our parameters are too wide.

Anyway, that’s enough moaning.

With any luck, we should see things normalize near term and settle back into our standard breakout ways.

So, with that noted let’s get to the action for today. As ever, take a look at the chart below to get an idea what’s on. For reference, we’re narrowing our timeframe to the one-minute chart in an attempt to force the hand of the market.

So, as the chart shows, the range we have in our sights for the session today comes in as defined by support to the downside at 2207 and resistance to the upside at 2242.

We’re going to stick to our guns and maintain a breakout approach right now, so we’ll be in long towards an upside target of 2270 if we see price close above resistance. Conversely, if we get a break and a close below support, 1180 becomes a downside target on a short position.

As ever, keep stops tight to stay on top of risk.

Charts courtesy of Trading View

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