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Another day is about to draw to completion out of Europe in our bitcoin trading efforts and things are really starting to move now. When we covered the bitcoin price this morning, we noted that there was real potential for a break of the $5,000 level and that, if we do see this break, we will almost certainly see a continuation of the upside momentum towards $5100 as excitable bulls pile into the markets and as stop losses on short entries are picked off in a short squeeze type fashion.
From a longer-term perspective, then, that is very much the key level to watch. If we do see it broken, bitcoin is going to make headlines globally tomorrow and this in and of itself could feed into the upside action.
We’re here this evening, however, to set up some intrarange trades, so let’s do just that.
As ever, before we get started, take a quick look at the chart below so as to get an idea of where things stand right now and how action brought us to current levels today. It is a one-minute candlestick chart and it has 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 4803 and resistance to the upside at 4820. This is a very tight range, so we are going to go at price with a pure breakout strategy for the time being.
So, if we get a close above resistance, we will jump into a long trade towards an immediate upside target of 4835. We need a tight stop loss on the position and somewhere in the region of 4850 looks as though it should do the job. Looking the other way, a close below support will have us in short towards 4785. A stop loss on this one at 4810 works well.
Chart courtesy of Trading View
