Just as we dud this morning, let’s kick off this evening’s analysis with a chart. The fifteen-minute candlestick chart in the image below highlights the action seen in the bitcoin price across this morning, and early afternoon’s, session, and retains our predefined range on the overlay.
As the chart illustrates, price broke through our predefined resistance level shortly after lunch in Europe, and after an initial spike, has managed to maintain its level above broken resistance. Our target is 426, so we’ll be holding the trade until it either hits this target or returns to trade back within range and takes out our stop loss at 420 flat (this morning’s in term support).
So, this out of the way, let’s look at what we’re watching going forward. We’re not going to be entering any fresh positions until the one we currently hold expires (be it through a stop or a profit), but we’ll outline tonight’s key levels now both for those not yet in a trade, and for our action carrying forward to this evening. To see tonight’s range, take a look at the chart below.
As the chart shows, the only real alteration we are making between this morning’s framework and that which we are looking to trade tonight is the lifting of in term resistance to the most recent swing high at 423 flat. In term support remains at 421, giving us a slightly wider (although still tight) range to play with this evening.
So, according to the rules of our standard breakout strategy, we are going to be targeting an upside entry towards 427 on a break and close above in term resistance, with a stop loss on this one at 420 to define our risk.
Looking to the short side, a close below support will signal a bearish entry towards an initial downside target of 416 flat. Stop at 423.
Charts courtesy of Trading View