That’s it out of Europe for the day, and we are now heading into what’s probably going to be a wasteland for bitcoin price traders this afternoon in the US. Thanksgiving is going to suck volume out of the markets, and in all likelihood, we’re going to see no real action until Asia wakes up for the Friday session. We’re going to set up against price anyway – sometimes some of the biggest moves come on thin volume sessions – and see what we can glean from the market if/when things move.
So, take a look at the chart below to get an idea of our focus levels.
It is an intraday chart that shows a screenshot of the latest action in the bitcoin price (somewhere around twelve hours’ worth of price action) and it’s got our key levels overlaid in green. Once you’ve familiarised yourself with that, we’ll get to the nitty gritty.
As the chart shows, the range in focus for this evening’s session out of the US, and beyond into the Asian session early morning on Friday, is defined by in term support to the downside at 740 flat, and in term resistance to the upside at 748. This is a pretty narrow range. Not quite narrow enough to stop us going at price with an intrarange approach, but in line with our decision to decline the intrarange entry this afternoon, we are going to stick with our breakout strategy for the time being.
So, that means that if price closes below in term support, we are going to get in short on the candle close towards an immediate downside target of 733. A close above resistance, on the other hand, will put us in a long entry towards 755. Stops just the other side of the entry on both trades keeps risk tight.
Let’s see how things play out.
Happy trading all!
Charts courtesy of SimpleFX