In this morning’s bitcoin price analysis, we outlined what was a pretty tight range for use during the European session, and said that we would incorporate our breakout strategy only for as long as action remained as-was. That is, relatively tight highs and lows, without too much in the way of volatility. Action has now matured throughout the day, and there hasn’t really been too much to speak of. We did get a little bit of a break earlier on today, and we managed to get in for a quick profit to the upside, but nothing substantial, and we head into this evening session in a relatively similar position to that which we kicked off the day. That is, we are hovering just above the 900 region, and we are forced into a pretty tight range once again. Like we said this morning, this isn’t necessarily a bad thing, it just means that we will only be able to use bitcoin price breakout trades, and not intrarange. Sometimes, this saves us an embarrassing loss. Intrarange can be tough in certain environments, and breakout is generally a lot more lenient.
So, without further ado, let’s get some levels outlined. Take a quick look at the chart below to get an idea of what we’re focusing on, and where we are looking to get in and out of the markets according to our intraday strategy.
As the chart shows, the range in focus is defined by support to the downside at 912, and resistance to the upside at 926. Like we say, breakout only this evening.
If we see price break above resistance, we will enter long towards an upside target of 937. A stop loss on the trade at 922 defines risk. Conversely, a close below support will put us short towards 900 flat. This one’s pretty aggressive, and leaves us plenty of room for a stop loss, so somewhere in the region of 917 looks good.
Charts courtesy of SimpleFX