So that’s Monday done, at least out of Europe, and it’s time to set up against the US afternoon and – beyond that – in to the Asian session later tonight. In this morning’s analysis, we noted that it looked as though price was winding up for a medium term increase, and that we might be able to take advantage of this winding up if we saw a breakout. As things turned out, we got exactly that. Price broke to the upside early afternoon and (while admittedly choppy) ran up to our take profit with no real issue. It’s a decent start to the week, but it’s only a small run in what we eventually hope to see – a break of the psychologically significant 800 mark. Mainstream media is starting to pick up on the bitcoin space once again, and this will amplify if the bitcoin price can break 800; we all know what happens when the mainstream gets an interest in crypto.
So, with this in mind, and as we head into this evening’s session on Monday, here’s a look at how we are setting up against the markets, and an outline of where we will look to get in and out of our positions using this setup. As ever, take a quick look at the chart below to get an idea of what we are focusing on. It’s a five-minute candlestick chart and it’s got our range overlaid in green.
Just as was the case for today’s trading strategy, we are going to go after price with our breakout strategy only for now. We’ve got resistance at 751, and support at 744.
If price can close above in term resistance, we will look to get in on the breakout for a long trade towards an initial upside target of 760. A close below in term support will put us short towards target of 738 flat. Stops just the other side of the entries define risk.
Charts courtesy of SimpleFX