Bitcoin Price Watch; Let’s Get Some Action! 2016-05-24

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In yesterday’s analysis, we commented on the relatively slow week we had seen in the bitcoin price last week, and noted that – in response to the little bit of volatility we saw over the weekend – we expected some decent momentum to come our way during Monday’s session. As things turned out, we did see some momentum; not quite as dramatic as we’d hoped for, but momentum nonetheless, and we managed to get in and out of the markets for a quick profit on the European session action.

We are about to head into a fresh morning session out of Europe today, and with any luck, we will see either a repeat of yesterday’s action, or some extended volatility. In either situation, we should be able to get in for a scalp profit or a sustained breakout profit on the action.

So, with this said, and as we head into today’s session, what are we looking at in the bitcoin price, and where will we look to get in and out of the market according to our intraday strategy? Take a look at the chart to get an idea of what we’re watching before we kick off the strategy analysis.

At the chart shows, the levels we are watching for today’s session in term support at 446 and in term resistance at 450. It’s a relatively tight range, so we will be sticking with our breakout strategy only, as opposed to our breakout and our intrarange strategy as a combination approach.

So, a close above resistance signals a long entry towards an initial upside target of 455. A stop loss on this one somewhere in the region of 448.5 keeps things tight from a risk management perspective. Looking the other way, if price breaks below support, we will look to enter short towards a downside target of 440. A stop loss on this one somewhere in the region of 448 flat defines our risk.

Happy Trading!

Charts courtesy of SimpleFX

Header Image Via NewsBTC