Bitcoin Price Watch; Trading A Narrow Range

The close of the week is fast approaching, and we’ve had a pretty volatile week in the bitcoin price. Things started off pretty slow, and we thought that we were setting up for a relatively flat week. As things turned out, that wasn’t what we got. We managed to get in and out on a variety of strategic approaches, including breakout scalp and intrarange, and we are closing out the week net up on the markets – that is, if we don’t have too bad a day today. Action overnight last night gave us plenty to look at as far as setting up our target levels for today’s session is concerned, so let’s get down to the detail. Before we get to the numbers, take a quick look at the chart below to see what happened last night, and get an idea of the range in focus for today. The chart a five-minute candlestick chart showing the last twelve hours or so worth of action. Screen Shot 2016-08-19 at 13.06.33

Screen Shot 2016-08-19 at 13.06.33

As the chart shows, we are going for an extremely tight range for the early part of today’s session. In term support comes in at 573 to the downside, while in term resistance sits at 576 to the upside. We’re not going to go after any intrarange trades because the bid ask spread won’t allow us to get in on any sort of decent risk profile.

Instead, we’re going for a solo breakout approach, in and out quick for tight scalp targets. Specifically, we are going to look at getting in long towards an initial upside target of 580 flat if price breaks and closes above in term resistance.

Conversely, if price breaks below support, we will get in short towards an immediate downside target of 565. A stop is necessary on this one, and somewhere in the region of 574 looks good for the trade.

Happy trading!

Charts courtesy of SimpleFX

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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