Ok, so this is where things stand. The bitcoin price took us out of our predefined range momentarily a little earlier on today, and according to the intraday strategy we described this morning, put us long in the markets. However, before the charts could form another candle, price returned to trade within the range, and took out our stop for a small loss on the first trade of the week. Since the taking out of our stop, price has remained relatively flat, and we are going to tighten things up a little for this evening’s session. We might get a big move (we’ve talked about the spikes we seem to get post consolidation in the past), so by taking this approach we get two-fold benefit. The first, that if action remains tight we can scalp profits from the market. The second, that if we get a spike, we’ll be ready to get in and out to take advantage of it.
So, without further ado, here’s what we are looking at for this evening’s session.
As the chart shows, the range we are looking at is defined by in term support at 434.13 and in term resistance at 439 flat. It’s a reasonably spacey range, so for those looking to trade on the sideways action, an intrarange approach will work. Same as always, long on a bounce from support and short on a correction from resistance – stop just the other side of the entry.
From a breakout point of view, a close above resistance will put us long towards an initial upside target of 444 flat. A stop just shy of current levels – somewhere in the region of 437.5, keeps things tight from a risk point of view.
Looking south, a close below support will signal a short entry towards 42723. A stop loss at 436 protects our downside.
Charts courtesy of Trading View