We’re big advocates of bitcoin (I guess that goes without saying) and so when price moves as part of a steep decline, it hurts a little. We’ve all got holdings, and these holdings take a hit when the bitcoin price dips.
That said, when you trade intraday as we do, a decline is neither positive nor negative, it’s just volatility. We like volatility, and we can take advantage of it if we set up right. In this instance, we set up right, and despite price collapsing from the high 700s to where it currently sits (somewhere in the region of $715) we’ve managed to come out of the day with a net profit.
We’ve had a great few days’ trading, and we’re looking for this to continue as we head into the final throes of the week. If this is to happen, we are concurrently looking for some volatility that we can take advantage of.
For what it’s worth, we think longer term support at 700 flat should hold firm on the wider timeframe charts. That said, we’re here to focus on the intraday, so let’s get to it.
Take a look at the chart below to get an idea of what’s on this evening. It’s a five-minute candlestick chart showing today’s action, with our fresh range overlaid.
As the chart shows, the range in focus for this evening’s session is defined by in term support to the downside at 708, and in term resistance to the upside at 723. Plenty of room for intrarange here, so get stuck in towards the opposite levels on a bounce from our key targets.
From a breakout perspective, a close above resistance will put us long towards an upside target of 730 flat. Conversely, a close below support will signal short towards 700 support.
Let’s see how things play out.
Charts courtesy of SimpleFX