Yesterday evening, we noted that in response to the action we had seen in the bitcoin price throughout the Monday morning and early afternoon sessions, we would maintain the previous session’s range in an attempt to draw a breakout profit. We highlighted some pretty tight targets, and let things play out. Unfortunately, things didn’t turn out quite how we had hoped they might. As you’ll see from the chart in a second, action overnight saw a break of our pre-slated support level, which put us short towards an initial downside target of 426.5. Post-break, we got a nice selloff, and it looked like we were in for a swift target hit on the position. Shortly before our target (circa one and a bit dollars), however, the bitcoin price reversed and corrected to the upside to trade back within range. In doing so it took out our predefined stop, and we exited the trade for a small loss.
We are now trading back within the range we defined yesterday, and so with a slightly amended risk parameter, we re going to maintain yesterday afternoon’s approach – breakout towards some relatively tight scalp targets. Get a quick look at the chart to see