In this morning’s analysis, we looked at how the bitcoin price moved overnight last night, and set up a pretty tight range ahead of the open. We looked to trade a breakout scalp strategy and get in for some nice quick profits on volatility. Action has now matured across the session, and it looks as though our approach paid off. Price broke to the upside a little earlier on, and ran up to our predetermined target relatively quickly. It has now corrected a bit, and this has given us a fresh range to go at for this evening’s session out of Asia.
So, going forward, let’s take a look at the range in focus for this evening, and try and put a strategy in place for tonight. As ever, take a quick look at the chart below to get an idea of what we are focusing on. It’s a five-minute candlestick chart showing the last twelve hours’ worth of action, and it has our range in focus overlaid in green.
As the chart shows, the range we are now looking at is defined by in term support to the downside at 574, while in term resistance is at the most recent swing high (post run up) at 581. It’s not going to give us a wide enough range to go at from an intrarange perspective, based on a bid ask limitation, but this might change if we get a chance to widen out our range on any volatility.
Looking at our breakout strategy, we are going to get in long on a close above resistance towards an immediate upside target of 587. A stop at 579 defines our risk on the position. If price closes below support, we will get in a short position towards a downside target of 568. Again we need a stop loss, and somewhere in the region of 576 looks good.
Charts courtesy of SimpleFX
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