Bitcoin Price Watch; Looking Ahead to Asia

We are heading into the close of the European session on Monday, and it’s time to sort out our strategy for this evening’s trading. In this morning’s analysis we highlighted a pretty wide range, and based it on the latest swing lows and swing highs that presented themselves over the weekend. When we published the analysis, the bitcoin price was trading just shy of resistance, and so our immediate bias was to the upside. Having said this, we also framed a downside entry, and the width of the range paved the way for a potential intrarange approach as well.

So, with this said, how has today’s action affected our strategic approach for tonight, and given this effect, where will we be looking to get in and out of the markets according to any one of our standard intraday strategies this evening out of Asia? As ever, get a quick look at the chart below to see what range we are focusing on, and to get an idea of how action in the bitcoin price played out during today’s European session.

Screen Shot 2016-05-23 at 16.58.21

Screen Shot 2016-05-23 at 16.58.21

As the chart shows, today’s action has left us with a focus range defined by in term support at 443 and in term resistance to the upside at 449. Again, it’s a wide enough range to go at price with an intrarange approach (if action affords us the opportunity), so long at support on a bounce and short at resistance on a correction, stop just the other side of the key level to define risk.

Looking at the situation from a breakout perspective, if price breaks and closes below support, we are going to enter towards an initial downside target of 437. Stop at 445.

On the long side of things, a close above resistance will signal an upside entry towards 454, with a stop at 446 to keep our risk profile attractive on the trade.

Charts courtesy of SimpleFX.

Header Image via NewsBTC

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