Just as was the case this morning, we aren’t going to waste any time going over historical action in the bitcoin price ahead of this evening’s analysis. Things are moving too fast and if we spend time looking at how price got to where it is right now, particularly from this morning’s levels, we might miss an entry.
Suffice to say, things have been very volatile and price is currently trading in and around the 4780 level. 4800 is very much on the horizon and this could be a stepping stone towards getting near to, or breaking through, 5000.
So, with that noted, let’s get some levels in place that we can use for the session this evening. As ever, take a quick look at the chart below before we get going with our strategy outline. It is a one-minute candlestick chart (so each candle on the chart represents one minute’s worth of price action) and it has our range overlaid in green.
As the chart shows, then, the range that we are forging forward into tonight’s session with is defined by support to the downside at 4759 and resistance to the upside at 4795. There’s a certain symmetry to it, which is nice. Anyway, we digress.
There is probably not quite enough room for us to go at things with our intrarange strategy right now, so we are going to stick with our breakout strategy for the time being. Specifically, if we see price close above resistance, we will enter long towards an immediate upside target of 4830. A stop loss on this one at 4780 gives us a nice risk-reward profile for the trade.
Looking the other way, if we see price close below support, we will jump in short towards an immediate downside target of 4730. A stop loss on this one somewhere in the region of 4766 keeps things tight.
Chart courtesy of Trading View