Right now we are in a live trade in the bitcoin price. Action earlier today broke through our predefined in term support level, and we got in to a short entry towards an immediate downside target of 720 flat. We pretty much hit the target about an hour ago, but the nature of bid-ask means we’ve got to run through it a little bit before our take profit is activated, and price bounced just a few cents short of this threshold. We now trade pretty close to entry, and are flirting with a stop loss hit if things don’t reverse and start to move back in our favor.
Not to worry.
We’ve ben here before, and we’ll be here again. The trick is to stick it out and see what happens. These are uncertain days in the bitcoin price anyway, with the US election dominating sentiment in wider markets, so a small stop loss hit isn’t going to be too much of a hit in the grand scheme of things.
Anyway, the point we’re trying to make is that we aren’t going to be getting in to any fresh entries while this one plays out.
That doesn’t mean we aren’t setting up against the evening session, however; we wouldn’t do that to our readers. There’s bound to be someone out there who missed the short trade, so for those not in a position as things stand, here’s what we are looking at.
Support comes in at 720 to the downside, while resistance comes in just shy of 727 to the upside (we’ll call it 727 to keep things tidy).
If price breaks through the former, it will signal a short entry (and it will also take out our downside target!) towards 713. Conversely, a close above resistance will signal log towards 735. Stops, as usual, just the other side of the entry in question to keep risk in check.
Charts courtesy of SimpleFX