It is the end of the week, and the bitcoin price looks to have settled down somewhat having experienced quite a lot of volatility across past few days. The range that we defined yesterday morning has not yet been broken, and just as we did last night, we’re going to keep it in place – well, sort of. The chart below shows action overnight, and is representative of the last circa 24 hours of action in the bitcoin price. It’s a 15-minute candlestick chart, and it has our slightly revised range overlaid.
As you can see, the range in question for this morning’s price watch analysis is defined by support to the downside at 445 and resistance to the upside at 451. There is just enough room to bring our intrarange strategy into play, so as ever, long on a bounce from support towards a target of resistance, with a stop loss just below support (somewhere in the region of 443.5) to define risk. Conversely, short on a correction from resistance towards a target of support, with a stop around 452.5 to keep things tight to the upside.
Looking at things from a breakout perspective, if price closes below support it will signal a short entry towards an initial downside target of 440. A stop loss on this one at 447 will ensure that we don’t find ourselves on the wrong end of an upside reversal, and in turn, an irretrievable loss.
On the long side of the strategy, a break and a close above resistance will put us in a long trade towards 457, with a stop at 448.5 helping us to maintain an attractive risk reward profile on the position.
As we head into the weekend, chances are we will get a little more volume, so keep an eye on our later analysis to find out how we are going to approach this situation as it unfolds.
Charts courtesy of Trading View
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