In this morning’s analysis, we defined the range we would be looking at for today’s session in the bitcoin price, and highlighted a few of the key levels that we would be looking to target in the event that we got an entry signal based on our breakout strategy. Action has matured since we defined these levels, and we are currently in a long trade according to an upside signal that came on the break (and close) above in term resistance about an hour ago. We got a break a little earlier than that, but failed to close above, and so held off pulling the trigger on an entry for further confirmation.
Since we are already in a trade, and as we generally say when we are in this sort of position, we won’t be looking to enter any fresh positions until this one matures; that is, to say, we get out on a stop hit or a target hit. For those of you not in a trade, however, we’ll outline a strategy that discusses what we would have looked at playing if we weren’t already active.
So, first up, take a look at the chart below to see both our current position (live) and the levels we are looking at tonight.
As the chart shows, the broken resistance at 404.86 turns to support for this evening’s range to the downside, while in term resistance is defined by the upside target of our active trade, coming in at 410 flat.
This is a pretty tight range, so we’re just going to focus on the breakout strategy. If the upside momentum remains, a close above in term support will signal a long entry towards 415 – a pretty tight scalp target – with a stop at 408 defining risk.
A close below in term support in the bitcoin price will likely take us out of our current live, long trade, but it will also serve to signal a short entry towards 400 flat. Again, a tight one, so a stop at 401 keeps things tight.
Charts courtesy of Trading View