That’s another day complete in our bitcoin price trading efforts and – once again – we’ve had a pretty volatile day as far as price is concerned. Things are moving at pace now based on a variety of fundamental inputs and – as more and more of these inputs become relevant – expectations are that increased volume will translate to a parallel increase volume and – by proxy – momentum.
Momentum can be a good thing, of course, especially as far as our breakout strategy is concerned. What we don’t like to see, however, is choppy action in and around our key levels. This sort of action is a rapid route to stop loss driven trading and can really take the edge out of any accumulated net gains.
Anyway, we don’t know what sort of action we are in for near term, so we’ve just got to ensure that our risk management principles are solid and hope that we can avoid chop-outs as and when they arise.
So, let’s get to tonight’s key levels.
As ever, take a quick look at the chart below before we get started so as to get an idea where things stand. It is a one-minute candlestick chart and it’s got our key range overlaid in green.
As the chart shows, the range we are looking at for the session this evening comes in as defined by support to the downside at 7071 and resistance to the upside at 7131. We are going to initially lookout for a close above resistance to validate an upside entry towards a target of 7175. Looking the other way, and if we see price close below support, we will jump into a short trade with a downside target of 7000. A stop loss on both positions just the other side of the entry points will ensure we are taken out of the trades if things turn against us.