A look at the daily chart reveals the frustration we’ve experienced across the last couple of weeks in the bitcoin price. It shows the difference between action throughout May, June and Early-July, and action seen across the last ten to fourteen days. Specifically, the former time period brought with it plenty of volatility. Price rose into June, peaked, and then dipped into a period of range bound momentum. We were able to bring both our intraday breakout strategy and our intrarange strategies to the table pretty much every session, and had plenty to go at from a reward perspective on our positions.
Now, things aren’t so simple. Price has caught in a circa ten-dollar range that it can’t seem to break out of. When it does, it’s just a spike, and price returns to trade back within-range before long.
This doesn’t mean we haven’t been able to pull a profit from the market – there have been a number of entry signals over the last couple of weeks that we’ve taken and – with mixed results – ridden out to close. It doesn’t mean we’ve had to be a lot less greedy when setting our take profits, however, as well as a lot more cautious (or aggressive, depending on how you look at it) with our stop loss placement. It doesn’t make for particularly exciting trading, but we’ve not really got much choice at the moment.
So, with that said, let’s take a look at what we are going for today. The chart below shows our range in focus for the session.
As the chart illustrates, we are looking at in term support at 653, and in term resistance at 658.If price can close below support, we will look to enter short towards 645 flat. Stop at 655. Conversely, a close above resistance will signal long towards 665, with a stop at 656 defining risk.
Charts courtesy of SimpleFX