So it looks as though, after what started out as being a pretty flat day, we’re finally about to see some momentum unfold in the bitcoin price. We’ve just outlined a range for this evening, and price is trading just shy of the resistance level that forms the upper boundary of this range right now. As such, instead of wasting any time, let’s get straight to our key levels and get things in place before we get a break.
So, as ever, take a quick look at the chart below to get an idea of what’s on, and where we are looking to get in and out of the markets if and when price moves.
The chart is a five minute candlestick chart, and it’s got our range in focus overlaid in green. It also shows the action we’ve seen mid morning out of the US.
As the chart shows, the range that we are looking to as underpinning our strategy execution this evening comes in at support to the downside at 1145, and resistance to the upside at 1158. As mentioned, we are currently trading just shy of the latter, so we’ll take a look at this entry first.
Breakout strategy initially, so if we see price break to the upside, we’ll look to get in long on a close above resistance. On the position, we’ll target an immediate upside level of 1170. Quick entry, quick close. A stop on the trade at 1155 defines our downside risk.
Looking the other way, a close below support will get us in to a short trade towards 1135. A stop on this one at 1148 will ensure we are taken out of the trade in the event of a bias reversal.
So, that’s where things stand – let’s see how things play out going forward.
Charts courtesy of SimpleFX