For the session this evening, we are going to widen out our range a little bit and incorporate both our breakout and our intrarange strategy into our operations. Things have been pretty volatile during the session today and the bitcoin price currently trades in and around the $4380 level. This is a strong recovery on the early week pricing and, with any luck, we will see a maintenance of the strength moving forward into the weekend. We cannot be sure, of course, but it looks as though the bulls are very much in control right now.
So, with that noted, let’s get some levels in place with which we can push forward into the session this evening. As ever, take a quick look at the chart below before we get started so as to get an idea of what’s on where things stand.
It is a one-minute candlestick chart and it has our key range overlaid in green.
As the chart shows, the range we are using for the session this evening comes in as defined by support to the downside at 4335 and resistance to the upside at 4395. From an intrarange perspective, we will enter long on a bounce from support towards a target of resistance and reverse the trade on a correction from resistance, targeting support. Stop losses just the other side of the entries on both positions will take us out of the trade in the event of a bias reversal.
Looking at breakout, if we see price close above resistance, we will enter long towards an upside target of 4440. Conversely, a close below support will have us in short towards an immediate downside target of 4300 flat. Again we need stop losses on both trades, so 4380 looks good for the first one, while 4350 looks good for the second.
Chart courtesy of Trading View