It is the end of the week, and we are going to mix things up a little bit for our first analysis out of Europe today. Price has been pretty volatile overnight, and this has necessitated that we narrow our timeframe (from the usual 15-minute candlestick chart to the five-minute candlestick chart). This means we can take advantage of the shorter-term volatility and – also – helps us to align our predefined range a little more accurately. So, with this said, and as we head into today’s European morning session, where are we looking to get in and out of the markets according to our intraday strategy, and how will we respond to any volatility? As ever, take a look at the chart below. As mentioned, it’s a five-minute candlestick chart, and it shows somewhere around the last 24 hours’ worth of action in the bitcoin price.
So, as the chart shows, today’s range is defined by support to the downside at 477.33 and resistance to the upside at 497.20. We are currently trading midrange, so we will have a look at the upside potential first. If the overarching bullish momentum continues, and price breaks resistance, it will signal a long entry towards 505 flat. On this trade, a stop loss somewhere in the region of 495 defines risk nicely. Looking the other way, if price breaks below support, we will enter short towards 465 flat. Again we need a stop loss, and we’ve got a little more room on this one, so somewhere in the region of 481 looks good.
It’s quite a wide range we are playing with today, so an intrarange strategy is more than valid. With this said, long at support on a bounce with a stop loss somewhere around 475 to define risk, and short on a correction from resistance with a stop somewhere around 500 even. Target resistance on the first trade (long trade from support) and, conversely, support from resistance.
Charts courtesy of SimpleFX