Well, that was another interesting one. Price continues to preform nicely against our strategy, with plenty of entry and exit points defined on the back of the volatility we are seeing intraday. The best thing about this sort of action, however, apart from the obvious profitable side of it, are the well defined levels. When price breaks, and then reverses, the reversal point can give us something solid to go at as either an upside or downside target, or the outer limits of a focus range. A bounce that follows a correction is even better.
This is exactly what we have seen over the past week or so, with price serving up well defined levels and – as a kicker – responding to these levels exactly how we would expect.
We are about to close out the European session, and enter into what has the potential to be a very hectic, or alternatively completely flat, US afternoon. This is the first time since becoming what we might refer to as mainstream that bitcoin has ridden through a US election, and the first time in US history that many of the other financial assets available on the market have ridden through such a fiercely contentious and unpredictable (in terms of response, if not in outcome, but this author believes outcomes is completely up in the air right now) election cycle and poll day.
What we’re saying here is anything could happen, so let’s get ready for it.
We’re doing the intraday equivalent of battening down the hatches. Tight range, scalp targets, well defined risk profile.
In term support to the downside comes in at 708, while resistance comes in at 717. Our targets are a little above and a little below, so a break below support signals short towards 703 and above resistance signals an entry towards 725. Stops just as tight, with 714 working well on our long position and 711 the same on the downside.
Next time we put together one of these analyses, the US will have a new President Elect.
Let’s see how things play out.
Happy trading and to our US readers, get out and make it count!
Charts courtesy of SimpleFX