After a solid week of gains in the bitcoin price, we are seeing some choppy action come about as we head into the weekend. This isn’t necessarily a bad thing – the opportunity to get in on some volatility means we can pick up a decent entry – but it makes things a little more complicated than the step up approach we have been using for the past few days.
There have been a few fundamental catalysts that have added strength to bitcoin this week, and these are likely to slow down over the weekend (from a fintech and governmental perspective, at least) so action may do the same. As such, we are going to bring both our breakout and our intraday strategies to the fore, with the goal of capitalizing not just on any volatility but also on any sideways action.
So, without further ado, let’s get to the charts. Get a quick look at the one below to get an idea of today’s range.
As the chart shows, the range we are looking at today is defined by in term support at 414 flat and resistance at 422 flat. It’s a pretty wide range, so as we’ve mentioned, we’ll be looking at both strategies for today’s entries.
First, a close above in term resistance will put us in a long position towards an initial upside target of 428. A stop loss at current levels (circa 419) defines risk. To the downside, a break and close below support will signal a short entry towards 408. On this one, a stop at 415 keeps things tight from a risk management perspective.
For the intrarange strategy, a long entry on a bounce from support and a short entry on a correction from resistance, with a stop one or two dollars just the other side of the position to define our risk on the trades.
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