So that’s it for another session in the bitcoin price. Things have been pretty wild all week, but there haven’t been too many opportunities to get in to the market other than on short, scalp breakout entries. We’re looking for some degree of sustained action so that we can get into a longer term trade, but it is impossible to get in on these big trades if price doesn’t give us what we need.
Anyway, let’s not moan. Let’s try and put forward some focus levels this evening, and ensure that if do get the action we want (i.e. price breaks and volume gets behind it) we are ready to take advantage of it.
So, here goes. Take a look at the chart below to get an idea of our range.
As the chart shows, the range we are looking at this afternoon is defined by in term support to the downside at 602 flat, and resistance to the upside at 606. We could probably raise our resistance level up a little bit, but the tighter the range is the better the chance of us getting in on something sustained.
If price breaks above resistance, we are going to get in to a long entry towards an immediate upside target of 610 flat. With just four dollars’ reward on offer, we need to put a tight stop loss in place – somewhere in the region of 604 looks good for keeping things two to one on our ratio.
Looking south, if price breaks below in term support, we are going to get in short towards a downside target of 597. The stop loss on this one would work in pretty much the same region, so we’re looking at 604 once more to define our risk.
Let’s see how things play out…
Happy Trading!
Charts courtesy of SimpleFX