We are about to kick things off for a fresh week’s worth of trading in the bitcoin price, and it’s time to take a look at action over the weekend to see if we can get a strategy in place for the European session.
Things were a little more volatile over the weekend than they have been in the past, and this volatility has given us some nice levels to go at for today. So, with this in mind, and as we head into the session bell, here’s a look at what we are going for, and where we are looking to get in and out of the markets according to our standard intraday breakout strategy.
First up, and as ever, take a look at the chart below before we get going. It’s an intraday hart with five minute candlesticks, and it shows the action that played out overnight as a backdrop to our range in focus (green).
So, as the chart shows, the range we are looking at for this morning’s session is defined by in term support to the downside at 612 and in term resistance to the upside at 618. These two levels give us about six dollars’ worth of room to play with, and so intrarange is an option for today’s morning session. Long at support, short at resistance, on a bounce and a correction from these levels respectively. Target the opposing level, manage risk with a stop loss just the other side of the entry.
Looking at our bitcoin price breakout strategy, if price closes above resistance, we will get in long towards an upside target of 625. A stop on this one at 617 defines risk nicely. Looking short, a close below support will put us in a downside position towards 605.
Charts courtesy of SimpleFX