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It’s coming to the end of the European session now, and it is time to take a look at the bitcoin price for the second time today. In this morning’s analysis, we discussed the relatively flat action we have seen across the last few days, and said that we hoped this action would widen out a little bit today and give us something to go at. Unfortunately, this didn’t happen. We set our range pretty tight this morning, but even though there was only a few dollars’ worth of space between support and resistance, price didn’t break either of our key levels, and we didn’t manage to get in on the intrarange trade either. This evening, we’re going to stick with our strategy, and keep a tight range with the goal of getting in on a short interest scalp trade. So, with this said, and as we head into tonight’s session, here is a look at what we’re focusing on. As ever, get a quick look at the chart below before we get started. It is an intraday chart, with a five-minute candlestick timeframe, and it has our focus range overlaid in green.
As the chart shows, the range we’re focusing on this evening is defined by support to the downside at 582, and resistance to the upside at 587. We’re going to stick with a breakout strategy only this evening, so no intrarange trades for now. If price breaks and closes above resistance, we will look to enter a long trade towards an initial upside target of 596. A stop loss on the trade somewhere in the region of 586 defines risk nicely. Looking short, if price breaks in term support at 582, and closes below this level, we will enter short towards 572 flat. Again a stop loss is necessary, and somewhere in the region of 584 works well.
Charts courtesy of SimpleFX
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Samuel is a currency trader, author and contributor to a number of the leading forex market publications including Futures Magazine, FX Trader Magazine and Spreadbet Magazine. He is a an avid bitcoin enthusiast with a real interest in how cryptocurrencies are likely to affect global economics in the future. View all posts by Samuel Rae