Overnight action in the bitcoin price was pretty weak, as relatively low volume weighed on volatility. In response, and in an attempt to draw a profit from any volatility we get out of today’s session, we’re going to look at a tighter range, narrow things up a bit, and go for the scalp strategy.
Scalping has worked well for us across the last quarter, and with action as it is at present (especially during the week) it looks like a good approach moving forward.
So, with this in mind, here’s a look at what we are focusing on in the bitcoin price today, and a description of how we are going to use these tightened key levels to draw a profit for the market. To kick things off, take a look at the chart below It’s a fifteen-minute chart with price action from the last few days, and today’s range (as well as yesterday’s to illustrate the narrowing) overlaid.
As the chart shows, we are bringing in term resistance down from yesterday evening’s 430 flat to 428.85, and bring support up from 424 flat to 426 flat. This narrowed range is the one to watch as we move forward.
We’ll be using only our breakout strategy for today’s session, as our range is too tight for an intrarange play.
With this said, here’s how to play it. A close above in term resistance will signal a long trade towards an initial upside target of 433 flat. A stop on this one somewhere in the region of 427.5 defines risk nicely.
Looking short, a close below in term support will signal to the downside, with an entry towards 421 looking like a sound trade. Stop loss at 427.5 to keep risk limited.
Happy Trading!
Charts courtesy of Trading View