It’s Wednesday morning, and time to take a look at what’s going on with the bitcoin price ahead of the European open. We noted last night that things have been pretty unpredictable in the markets over the last couple of weeks, and that this has had two primary effects. The first, that we’ve had the opportunity to get in and out of the markets for a nice profit. The second, that in order to ensure we keep this profit net at the end of the week, we’ve had to be really tight with our risk profiles. This has – in turn – meant we’ve been chopped out on a couple of occasions. However, it’s not an issue, as these small chop outs are better than getting caught out on the wrong side of a sustained run.
Anyway, that out of the way, let’s get to today’s session. We’re going to carry forward with our scalp entry, tight risk approach, and hope that we can replicate last week’s success today. The chart below highlights the range in focus, and also shows a little bit of yesterday afternoon/night’s action in the bitcoin price. It shows price topping out and then riding down towards the lower end of this morning’s range, before siding out into current levels. Take a quick look at that before we get going.
As the chart shows, the range in focus for this morning’s session is defined by in term support to the downside at 669 flat, and in term resistance to the upside at 675. These two levels represent the most recent swing low and high respectively.
If price breaks through in term resistance to the upside, we will look to get in on a long entry towards an initial upside target of 685. A stop at 671 keeps risk tight. To the downside, a close below support signals short towards 662. Stop at 671.
Charts courtesy of SimpleFX