We are about to close out on another day’s trading out of Europe in the bitcoin price, and once again, things have been relatively quiet. Action overnight last night left a lot to be desired from a volatility perspective, and we didn’t manage to get in to the markets according to either our breakout strategy or our intrarange strategy – despite the width of our predefined range. A look at today’s action reveals a remarkably similar pattern. After the sharp gains seen over the weekend and early in the week, price has run out of steam, and low volume (post corrective sell off) has translated to some pretty lackluster action across the board.
So, how are we going to respond to this? Well, as we have done a few times in the past, one option is to tighten up our range and go at price with a scalp based breakout approach. Scalps get us in and out of the markets relatively quickly, and so long as we keep our risk management tight on the positions we take (as ensured by a tight stop loss on any entry) can be a great way to profit from short term volatility, even if volume is low and movements aren’t particularly sustained.
So, with this said, and as we head into this evening’s session out of the US and beyond into the Asian session tomorrow, here’s a look at what we are going for in the bitcoin price markets.
The chart below is a fifteen-minute candlestick chart showing the last twenty four hours worth of action in the bitcoin price.
As the chart shows, we are now looking at a range defined by in term support at 672 and resistance at 690. It’s still a little wider than some of last week’s ranges, but tight enough to warrant some scalp entries nonetheless. Specifically, long on a close above resistance with an initial upside target of 700 flat. Short on a close below support towards 665 to the downside. Stops one or two dollars just the other side of the entry to define risk.
Charts courtesy of Trading View