We’ve come to the end of the week for our daily bitcoin price analysis, and it has been quite an interesting group of sessions. After the initial sharp movement we saw last Sunday, and the follow-through heading into Monday morning’s session, price settled somewhat, and we saw some sideways trading midweek. Yesterday we saw a brief return to the upside, and managed to get in and out the markets to draw a decent profit from the volatility, and overnight we did the same. It’s now the beginning of a fresh session out of Europe, and we’re looking to get into at least one more trade in an attempt to draw a final profit from the market before the weekend starts.
So, with this in mind, and as we head into today’s session, what are the levels we are watching in the current bitcoin price environment, and where are we looking to get in and out the markets according to our strategy? As ever, take a quick look at the chart to get an idea of what we are watching, and the range that defines today’s session.
As the chart shows, today’s range is defined by support to the downside at 446, and resistance to the upside at 450. It’s a pretty tight range, so we will be focusing mainly on our breakout approach. For those looking for a little more aggressive an entry, however, intrarange is acceptable as long as tight stops are used.
From a breakout perspective, a close above resistance will signal a bullish trade towards an initial upside target of 455. A stop loss on the trade somewhere around 448 defined risk.
Looking the other way, a short trade will signal entry on a break and a close below support, and we will enter towards a primary downside target of 440. A stop on this one at 448 again looks good from a risk management perspective.
Charts courtesy of SimpleFX
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