It’s been a good few weeks since we have had some long-term sustained upside momentum in the bitcoin price. Action this month so far seems to have been relatively choppy, and our breakout strategy – whilst somewhat effective – has given us a bit of a hard time. A few stop loss hits here and there have affected our end of week bottom line, and we have had to resort to both our intrarange approach and a scalp strategy when action has been flat. This week, however, we have seen just the type of action we like when it comes to the smooth application of our breakout approach in the bitcoin price markets.
Yesterday we managed to get in and out of the markets according to our intraday strategy for a decent upside profit, and overnight action afforded us the same opportunity. It’s still early days today, and we are just about to head into a fresh European session, but it looks as though the upside momentum is set to continue, and that – in turn – we will hopefully be able to replicate yesterday’s trading today.
So, as we head into a fresh session out of Europe, what are the levels that we are watching in the current price, and where will we look to get in and out of markets according to our intraday strategy? As ever, take a look at the chart to get an idea of the levels we are focusing on this morning.
As the chart shows, today’s range is defined by in term support at 452 the downside and resistance at 455 to the upside. There is just enough room to run an intrarange strategy, so long at support and short at resistance on any action within these levels.
Looking at things from a breakout perspective, a close below support signals shorts towards 445, while a close above resistance signals long towards 460. A stop loss just the other side of the entry in both cases defines risk nicely on the trades.
Charts courtesy of SimpleFX