It’s time to take our final look at the markets for the week. We’ve had a good week from a trading perspective in the bitcoin price, with action giving us plenty to go at on both the long and the short side. Price overnight last night was a bit rocky, with some choppy action making anything sustained pretty difficult. Action throughout today’s session has been a little more consistent, with price trending to the downside for the majority of the day. This is good as it gave us an opportunity to get in short on a break of support, and we managed to pull a small scalp profit from the break.
We are heading into the weekend now, and there are often some heavy movements in the weekend on volume spikes (which runs contrary to the standard financial asset markets). This is a good thing, so long as we set up right from a risk management perspective.
So, as we move forward, let’s take a look at how we can interpret today’s action from an intraday trading perspective, and how this interpretation can work for us as we go forward. First up, take a quick look at the chart below to get us going. It’s an intraday five-minute chart with tonight/this weekend’s range highlights.
As the chart shows, the range we are looking at is defined by in term support to the downside at 649 flat, and in term resistance to the upside at 661. Intrarange is on, so long at support and shot at resistance with a target of the opposing levels.
If price breaks either of the two levels, we will look to get in to the markets in the direction of the break. Long on a close above resistance towards 670, and short on a close below support towards 640 flat. Stop loss just the other side of the entry.
Charts courtesy of SimpleFX