Bitcoin Price Tight; Big Move On

By January 20, 2016Bitcoin Business

Screen Shot 2016-01-20 at 13.58.59 Yesterday we went into quite a bit of depth concerning our interpretation of the action in the bitcoin price so far this week. We noted that the action represented a consolidation of bullish and bearish sentiment, and that this consolidation could act as a sort of winding up before a big move. Action has now matured throughout last night’s Asian session, and we are mid way through today’s European session, and things haven’t (as yet) worked out according to our thesis. We did get a little bit of movement, and our range support (which we predefined as 375.75 in yesterday’s analysis) has been tested a few times, but our strategy has just been chopped around. As such, we haven’t been able to draw a profit from the bitcoin market overnight, and we are going to switch up our approach fro this afternoon and, beyond, in to this evenings Asian session.

To reiterate, the action we are seeing at the moment has come as a result of the fundamental uncertainty surrounding bitcoin’s viability and, in turn future. Things like this happen across all asset markets, and chance are we will be looking back thinking the whole industry overreacted by the end of this month. At that point we will probably return to the intraday volatility we are used to, and our breakout and intararange strategies will be more effective.

Today, however, and as mentioned, we’re going to switch things up. How? By tightening our levels right up and playing a pure scalp breakout strategy. Tight targets, even tighter stops, and small, sharp positions. At its core, our scalp strategy is no different to our standard breakout strategy – only the risk reward differs.

So, with this said, let’s get to our key levels and defined today’s range. As […]

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