The bitcoin space has been a tough one to operate in over the last few days. Price hasn’t been that kind to us from a long term perspective, and our normal efforts to hedge against any longer term price dips haven’t worked particularly well. Well, that’s maybe a little negative. We’ve got in and out of the markets just fine, and we’ve only been chopped out of a position on a couple of occasions, but the runs we have found ourselves on haven’t been particularly sustained, and we’re finding ourselves jumping in and out of the markets for scraps as opposed to picking up solid gains.
Anyway, we’ve got another day left of the week, and there’s a good chance we could get some solid action as the session matures today.
So, with this noted, and as we head into the session out of Europe, let’s get some key levels outlined and try and put forward some profitable parameters before the weekend. As ever, take a quick look at the chart below to get an idea of where things stand. It’s a five-minute candlestick chart and it’s got our key range overlaid in green.
As the chart shows, the range in focus for the session today is defined by support to the downside at 1040, and resistance to the upside at 1051. That’s just about enough room for some intrarange action, so long at support, short at resistance, if the levels hold. Target the opposing levels and place stops just the other side of the entries to ensure you get taken out for just a small loss if price reverses against you.
If price breaks through resistance, we’ll get in long towards a target of 1062. A close below support will put us in short towards 1030.
Let’s see what happens.
Charts courtesy of SimpleFX