We’ve seen some pretty solid patterns this week in the bitcoin price. The weekend action offered up a nice sharp movement – one that we managed to take advantage of and draw a quick profit from the market. We then noted that – as a hypothesis based on the consolidation we saw post-break – we could be in for another sharp move when markets finally picked up a directional bias. Again, we got this move during yesterday’s session, with a sharp downside break offering us another opportunity to pick up an entry based on the framework of our standard breakout strategy. Which brings us to today – and once again, we’ve seen some consolidation overnight.
A small, but short lived, downside break gave us something to consider just before market open today, but we stayed out of the markets and now have a nice range outlined – one from which we can look to get in and out if the consolidation/break pattern plays out again.
So, with this in mind, what are we looking to trade for today’s European morning session, and where does action suggest we should look to limit our risk and reward? Take a quick look at the chart