We are about to get things moving for a fresh week of trading in the bitcoin space and things are looking set up for a pretty interesting ride. We tracked action over the weekend and volatility was high, with price registering plenty of fresh highs on peaks but correcting steeply almost immediately subsequent to any highs to settle into bearish of consolidation-type trading.
How things are going to play out today is unclear. We’re hoping that well see a bit of strength outside of the consolidation action and, subsequent to that, a decent break into fresh highs.
If this happens, we’ll be ready to take advantage of things as they move. If we don’t get this sort of action, it’s not necessarily the end of the world, we’ve just got to make sure we keep things tight from a risk management perspective and that – in turn – we aren’t caught out on the wrong side of an off-trade.
Anyway, let’s get things moving for the session. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand. It’s a one-minute candlestick chart and it’s got our primary range overlaid in green.
As the chart shows, the range that we are looking at for the session today comes in as defined by support to the downside at 11320 and resistance to the upside at 11470.
We’re going to stick with our breakout strategy for the session, so we’ll look at jumping into a long trade first if we get a close above resistance. A target at 11600 looks realistic.
Looking to the downside, if we see price close below support, we’ll be able to jump into a short trade towards 11200.
A stop on both trades just the other side of the entry will ensure we’re taken out if things go against us.
Let’s see how things play out.