If you’d have said a couple of weeks ago that we’d be looking at closing in on the 1,100 mark at the start of 2017 in the bitcoin price, we probably wouldn’t have believed you. We’re all for price increases, of course, but given that price essentially stagnated throughout a major part of 2016, we weren’t expecting that sort of run as the year drew to a close. Anyway, we’re here, and we’ve managed to draw a pretty decent run of profits from the gains. Enter long, target around ten dollars, take profit and wait for the next opportunity. So, that’s what we’re going for this evening – nothing fancy, just an extension of our standard strategy designed to capture profit on any volatility.
So, with this in mind, let’s get some levels outlined for the New Year, and see if we can continue our run this evening. Take a quick look at the chart below before we get started. It’s a five-minute candlestick chart and it’s got our key levels (range) overlaid.
As the chart shows, the range we are looking at is defined by in term support to the downside at 1052, and resistance to the upside at 1065. There are more than ten dollars of range to go at here, so there’s plenty of room for an intrarange approach. Long at support, short at resistance, stop just the other side of the entry.
Looking at our breakout strategy, if the bitcoin price closes below support, we’ll get in short towards 1042. A stop at 1055 defines risk on the position. Looking long, a close above resistance will put us in long towards an immediate upside target of 1075. A stop on this one somewhere in the region of 1062 will ensure that we are taken out of the trade in the event of a bias reversal.
Let’s see how things play out.
Charts courtesy of SimpleFX
