In yesterday evening’s analysis, our primary focus was a relatively tight scalp range, and more specifically, how we would approach our intraday strategy using this range in order to take advantage of any overnight volatility. We suggested that – as a result the large decline we saw early yesterday morning – action might consolidate somewhat, and in doing so, prime itself for a relatively sharp move. Action has now matured overnight, and with the bitcoin price being so up and down across the last few days, it’s difficult to suggest where we might be heading as we close out the week and go beyond, into the weekend. This doesn’t mean we cannot set up against any potential action, however. It just means we’ve got to be a little bit more flexible with our range than normal. With this in mind, and in light of last night’s action, here’s what we are looking at in the bitcoin price today, and how we are looking to approach any volatility should it come.
So, as the chart shows, the range in focus today is quite wide – circa $10. It is defined by support at 436 to the downside and resistance at 447 to the upside. The latter of these levels is the most recent swing high, while the former is the latest low.
Intrarange is an option today, so long at support and short at resistance. A stop loss just the other side of both entries ensures a timely exit in the event of a reversal.
Looking at things from a breakout perspective, if price closes above resistance we will look to enter long towards an upside target of 452. A stop loss on this one somewhere around 444 keeps risk attractive.
Looking the other way, if price breaks below support at 436, it will signal a short entry towards 430 flat. Stop loss at 439 on this one.
Charts courtesy of SimpleFX
Header Image via NewsBTC