In this morning’s bitcoin price watch article, we noted that the range we were focusing on in the bitcoin price was probably a little too tight to bring an intrarange strategy into the equation, but for an aggressive trader, it would probably be possible to draw a profit under some strict risk management parameters. We also discussed some breakout entries, and outlined a few key levels that we would look to take a position at if, and when, the bitcoin price closed above or below them respectively.
Action has now matured across the European morning session, and we are about to head into the US afternoon, and beyond that, Friday evening out of Asia. The weekend’s have traditionally offered up a lot of volatility, and with mainstream attention focused on the crypto space (on the back of the Nakamoto furor), chances are this weekend will be no different. That is, we’re expecting some volatility – be it as part of a continuation of the current overarching uptrend, or a reversal and a decline to the short side (as we saw at the Sunday open last week).
Whatever price offers up, we’ll be ready to get into the markets no a sustained directional move – here’s how.
The chart above shows action across the last twenty-four hours or so, and has the range we are looking at this evening (and beyond) as our entry defining parameter. In term support rounds off the downside at 448, and in term resistance does the same to the upside at 451.
We’re going to keep things conservative, and stick with a pure breakout approach for the weekend.
Specifically, this allows us to enter long on a close above resistance, towards an upside target of 457. A stop on this one at 449 defines our risk on the position.
Looking the other way, a break and close of support signals short towards 443. Stop at 450 flat to keep things tight.
Charts courtesy of SimpleFX.