Screen Shot 2015-12-09 at 19.05.53 Earlier today, in the first of our twice daily bitcoin price watch pieces, we documented the breakout above $400 we saw last night. Traditionally, strong psychological levels (such 100, 200, 500, 1,000 etc.) will initiate the kind of volatility we saw on the break, and when they are broken to the upside, will often retest as support. Conversely, but similarly, when a key level breaks to the downside it will often retest as resistance. In this instance, however we’ve not seen this retest. Price has stayed buoyant despite the inevitable run of profit taking, and this suggests there is some underlying fundamental strength in play. A such, while we will still take a short position if our breakout strategy dictates that we should, we are going to keep our risk parameters tight and well defined. We don’t want to get caught on the short side of a run towards 500, for example. So, and with that out of the way, where are we looking to get in and out of the markets this evening, and what are the levels in focus? As ever, take a quick look at the intraday chart below – it illustrates the bitcoin price movements on a 15 minute per candlestick timeframe. Screen Shot 2015-12-09 at 19.05.53 The first thing you will notice is that the range we are trading tonight remains unchanged on the one we have been focusing on today. In term support comes in at 41.16 (as defined by the spike down earlier) and resistance at 425.02. These are the levels to watch going forward.
If we break below support, we will look for a tight scalp entry towards 404, with a stop at 414 defining our risk. Looking the other way, and in line with the overarching […]
