We are closing in on the end of the European session on Monday in the bitcoin price and it’s time to take the second of our twice daily looks at what happened and then attempt to use this to formulate a strategy that we can use going forward.
As ever, before we get started, it’s worth taking a quick look at the chart below so as to get an idea where things stand. The chart is a one-minute candlestick chart and it’s got our primary range overlaid in green.
As the chart shows then, the range that we are looking at for the session this evening comes in as defined by support to the downside at 7284 and resistance to the upside at 7368.
We are going to use our breakout strategy only for the time being, since our intrarange approach is probably a little too aggressive for the type of market conditions we’re dealing with at the moment.
We’d love to play it aggressively but it’s not really a smart option right now.
So, our first trade rests on a signal of a close above resistance. This one is an upside entry and if we get the signal, we’ll enter long towards an immediate upside target of 7500. A stop loss on the position somewhere in the region of 7340 will keep risk tight and will ensure we are taken out of the trade if things turn against us (if, that is, the downside momentum continues to push price down near term).
Looking the other way, if we see a close below support on the intraday charts, we’ll see it as a short entry signal and we’ll get in towards a downside target of 7100.
A stop on this one somewhere around 7300 flat looks good.
Let’s see how things play out.
Charts courtesy of Trading View