So after all our suggestions that price had finally returned to some volatile action on the intraday charts, and us finally getting in and out of a few nice trades, things seem to have settled down. Action overnight was essentially flat – with our bid ask taken into consideration we couldn’t even get in on anything short term, and it looks like early morning out of Europe we are going to see much of the same.
When we see action like this, it’s tough to get a proper read on how we should play things. Without any solid action (and in turn, reversal points) there aren’t really any near term strong levels to go at, so we’ve pretty much got to set up against the longer term and wait it out. This, of course doesn’t make for great entertainment if this wait out period is extensive. On the bright side, the nature of price action, and especially so when it comes to bitcoin, is that price can turn on a dime, and these periods aren’t usually that drawn out.
So, with this in mind, and as we head into today’s European session, let’s see if we can set up some forward looking levels and try to go at price with these.
As ever, take a look at the chart below to get an idea of what’s on. It’s a five-minute chart with the last twelve hours worth of action highlighted, although it might as well not be because it’s of very little use to us right now.
So our key levels going forward are in term support to the downside at 640 flat, and in term resistance to the upside at 645.
If we see price break either of these levels near term, or medium term, we will look to get in on the direction of the break, with a target of five dollars’ rewards and a risk of two dollars. Read: take profit at 650 and stop at 643 for the long trade, and take profit at 635 and stop at 642 for the short entry.
Let’s see how things play out…
Happy trading!
Charts courtesy of SimpleFX