That’s another day out of the way in Europe, and despite what we said we’d be hoping for heading in to the session early morning, thing’s haven’t worked out that well. The bitcoin price seems to be stuck in a sort of sideways trading pattern right now, and it’s not even trading sideways at or near a key psychological level (say, a 00s). This means that we’re essentially stuck in a loop of up down, range bound action, until something happens to initiate a breakout. This something is almost always fundamental, and there’s plenty in the pipeline right now, so there’s every chance that something will happen and we’ll get some volatility, but we don’t know when.
Our job, unfortunately, is to be ready as and when it happens. This is where our strategy comes in to play, so for the remainder of this sideways trading happening, we’re basically going to be saying the same thing. Breakout only (unless the range widens a little to allow a intrarange approach, but we don’t expect it will near term) and short scalp profits on ay break. Tight stops but not too tight, as if they are too tight we will get chopped out, and when things are sideways like this, being chopped out is a serious concern.
So, with that said, let’s look at the key levels.
Take a look at the chart below to get an idea of where things are trading, and what we are looking at as our focus parameters.
As the chart shows, the range in focus is in term support to the downside at 741, and resistance to the upside at 748.
If we see price break below support, we’re going to get in short towards a downside target of 735. Conversely, a close above resistance will put us long towards 754.
Happy trading!
Charts courtesy of SimpleFX