So there we go then, another week complete in our bitcoin price trading efforts. In this morning’s analysis, we highlighted the fact that we would be on the lookout for a breakout and a subsequent run (ideally to the upside) as indicative of some strength being on the cards for the weekend. We also noted that our position heading into the start of the session this morning was relatively strong and that so long as we didn’t do anything stupid from a risk management perspective, we should be able to close out net positive at session end.
As it turns out, both of these things have played out in our favor. The bitcoin price ran up to intraday highs in and around 4450
The bitcoin price ran up to intraday highs in and around 4450 mid-afternoon out of Europe and we were able to get in and out relatively easily on the break. Since the highs, price has corrected a little bit and currently trades around 4400 flat. We have some decent levels to go at this evening, so let’s get them in place and put forward a strategy with which we can approach the late US session. As ever, take a quick look at the chart below before we get started. It is a one-minute candlestick chart and it has our key range overlaid in red.
As the chart shows, we are going to go at the markets this evening with support at 4410 and resistance at 4445 (aforementioned highs). We will address the downside trade first because price is currently trading just ahead of support. If we see a close below this level, we will enter shorts towards 4385. A stop loss in the trade at 3420 looks good.
Looking the other way, a close above resistance will have us in long towards 4490. A stop loss on this one at 4435 will take us out of the trade if things turn against us.
Charts courtesy of Trading View