Bitcoin Price Watch; Scalp Strategy in Play

The European session is about to begin, and action overnight in the bitcoin price has given us plenty to  go at as far as interpretation is concerned. We got the nearing completion of a classical technical pattern – specifically, an upward sloping triangle – and some overnight highs to round off our parameters with solid support. To the downside, we’ve also got some pretty clearly defined parameters that we can use to get in short if action affords us an opportunity to do so.  So, with this said, here is a look at what we are focusing on in the bitcoin price  today, and where we will look to get in and out of the markets according to our intraday strategies going forward.

The chart below shows the above-mentioned action, with a candlestick representation across the 15-minute time frame.

Screen Shot 2016-05-10 at 09.57.15

Screen Shot 2016-05-10 at 09.57.15

As the chart shows, we have support to the downside at 455, and to the upside, resistance at 460 flat. With about five dollars’ worth of range to play with, intrarange is just about possible – although in order to justify any entries, a tight stop loss will be required no more than one or two dollars the other side of the key level in question.

Looking at things in line with our breakout strategy, if price closes above resistance it will signal a long position towards 465 as an initial upside target. A close below the upward sloping trend line (orange, chart) offers a nice quick scalp towards support. A second short on the close below resistance is available, with a downside target of 450 and a stop loss somewhere in the region of 457 to define risk on the position.

Bear in mind that volume was pretty low over the weekend, and if we see a continuation of this as we head into midweek, we might see some choppy action around the predefined key levels.

Charts courtesy of SimpleFX

Image courtesy of NewsBTC

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