We are about to head into a Fresh European session this morning in the bitcoin price, and there’s plenty to talk about. Price has given us a lot of volatility over the last week or so, with a few spikes to the upside serving up fresh (and sustained) highs, which have generally been followed by a short period of consolidation (likely on profit taking from the shorter term speculators). Action overnight seemed to mirror this trend, and it looks as though once again today we are going to have plenty to go at as far as speculative entries are concerned. We will probably also get the chance to be a little more aggressive than normal with our positions, purely based on the opportunity for a risk mitigated entry in the direction of the trend.
So, with this in mind, and as we head into this morning’s session out of Europe, here’s what we are focusing on in the bitcoin price, with a look at how we intend to get in and out of the markets if the volatility we have seen over the last few days presents itself as a fresh opportunity.
As ever, get a quick look at the chart below to get an idea of exactly what we are looking at from a range and a key level perspective. The chart is an intraday, fifteen-minute candlestick chart, using the prices offered up by SimpleFX.
As the chart shows, the range in question is defined by in term support at 560 and in term resistance at 568.
If price closes above resistance, we will look to enter a long position towards an initial upside target of 575. A stop loss at 566 defines risk.
Looking short, a close below support signals short towards 555, with a stop at 562 ensuring we are taken out of the trade in the event of a bias reversal.
Charts courtesy of SimpleFX.
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