Right. It’s Tuesday morning, and it’s time to take the first of our twice-daily looks at the bitcoin price in an attempt to figure out a method of drawing a profit from the market on any volatility we see during today’s action. Things have been pretty rough so far this week. We got chopped out during yesterday’s session, and overnight we didn’t really manage to get into too many different positions. One or two here and there, but also a loss, and we’re only just about net flat as things stand. With any luck, things should even out today, and we can start to pick up an actionable profit from how things play out.
So, as we move forward into the European morning session, let’s take a look at what we are focusing on in the bitcoin price, and see if we can set up some levels from which we can enter some profitable positions as price moves in and around them. As ever, take a quick look at the chart below to get an idea of what we’re focusing on and where things stand right now.
As the chart shows, the range we are focusing on for this morning’s session is defined by support to the downside at 926, and resistance to the upside at 934. There is not enough room for an intrarange approach today, so we’re going to go at price using our breakout strategy only. Specifically, if we see price break above resistance, we will get in long towards an immediate upside target of 944. A stop loss on the trade at 931 defines risk. Conversely, a close below support will signal shorts towards 915. On this one, a stop at 928 kills off risk, and will ensure that we are taken out of the trade if price reverses and moves against us.
Charts courtesy of SimpleFX