Yesterday was a little up and down in the bitcoin price. We saw a steep upside run early morning (before the European session kicked off for the day) and then a pretty ragged period of consolidation. By the time we published our first price watch analysis (a little bit later than usual) we were well into the consolidatory phase, and looked to set up a framework through which we could get in long if the bullish momentum returned, and things took another turn to the upside.
We got a few breaks, but most were false, and we were chopped out a couple of times – both to the short and the long side. As another note, over the last couple of weeks we have been outlining a much tighter range than previous. This has come about as the result of some pretty well defined ranges, and some equally tight price action. We’ll be continuing this sort of narrow range trading until the bitcoin price opens up a bit, meaning our intrarange strategy is – for now, at least – shelved.
So, with that said, here’s a look at how we are setting up against any potential volatility in the bitcoin price today. The chart below outlines the aforementioned narrow range.
As the chart illustrates, we are looking to 415 flat as in term support for today’s European morning session, and 417.50 to the upside as in term resistance.
Let’s address the long side first. We are currently mid range, and according to the standard rules of our breakout strategy, we’ll look for a break and close above resistance at 417.50 to validate a long entry towards an upside target of 422. A stop at 416 defines risk on this one.
Looking short, a close below support will validate a bearish entry towards 410 flat, with a stop at 417 to keep things attractive from a risk management perspective.
Charts courtesy of Trading View