We’re now closing in on the end of the day out of Europe and, in the bitcoin price, volatility has been the order of the day. Price has moved considerably since we first took a look at the markets this morning and – in line with this volatility – we’ve seen a pretty sharp revaluation of the underlying asset across the session.
As regular readers will know, we love volatility. Our strategy is all about taking advantage of sharp and sustained movement in the bitcoin price markets and when we get a day like today (which has been full of ups and downs) we are kept incredibly busy.
We’re hoping, then, that we can get a continuation of the same sort of action as we head into the US afternoon session this evening. If we do, we could be in for another busy period tonight.
Busy is good, of course.
So, with this in mind, let’s put together a strategy that we can carry forward into the session tonight and see if we can continue to pull a profit from the markets as and when price moves. As ever, take a quick look at the chart below to get an idea of what’s on and where things stand right now. It’s a one-minute candlestick chart and it’s got our key range overlaid in blue.
As the chart shows, the range we have set our sights on this evening is defined by support to the downside at 2457 and resistance to the upside at 2514. Standard breakout rules apply tonight, so we will be looking for a close above resistance to get us in long towards 2540. Conversely, a close below support will have us in towards a downside target of 2420. A stop on both positions just the other side of the entry will ensure we are taken out of the trades in the event of a turnaround.
Let’s see what happens.
Charts courtesy of Trading View