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So, we’re half way through the week, and things are hotting up in the bitcoin price from an intraday perspective. After what was a pretty slow day yesterday, we saw a little bit of up and down overnight and then this morning, just as European markets kicked off for the day, we got a spike in price and some fresh intra-weekly highs produced. Spikes like this are great because they not only serve as an opportunity to get into the market on the breakouts they represent, but they also give us some pretty solid levels to use as our defining range parameters. In this instance, with the spike being an upside break, we can use its peak as resistance. Sometimes if the pull back from highs is strong enough we can also use the pullback to set our support. With this on, unfortunately, it’s not really strong enough to allow us to do so.
No problem though. We’ve got a pretty solid support definer at the most recent swing low, so we’ll work with that instead.
So, with this in mind, and as we head into a fresh European morning session on Wednesday, here’s a look at how we are setting up against the markets, and an outline of where we will look to get in and out of our positions given this setup. As ever, take a quick look at the chart below to get an idea of what we are focusing on. It’s a five-minute candlestick chart.
We are going to after price with our breakout strategy only for now. Specifically, if price can close above in term resistance we will look to get in on the breakout for a long trade towards an initial upside target of 587. A close below in term support will put us short towards target of 570 flat. Stops just the other side of the entries define risk.
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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