Bitcoin Price Watch; Riding Out The Uncertainty
So we are finally approaching the end of this week and we’ve had a really odd week as far as volatility in the bitcoin price is concerned. Things are really unpredictable and we’ve not been able to judge where things are going to go within a couple of hours, never mind a day or more, which has translated to some pretty tough trading.
Not that we mind tough trading – our strategy is designed to take advantage of it, in fact – but it just makes things a little more awkward and necessitates that we stay on top of our risk management a little more, rather than keep things loose.
Anyway, enough of that.
Let’s get some levels in place that we can employ for the session going forward and see if we can pull a profit from the albeit volatile market. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand. It’s a one-minute candlestick chart and it’s got out primary range overlaid in green.
As the chart shows, the range we are looking at for the session today comes in as defined by support to the downside at 10386 and resistance to the upside at 10562. We are going to focus primarily on our breakout strategy for the time being, purely because this range is a little tighter than normal and we don’t want to risk getting into an intrarange entry only to subsequently miss out on a breakout signal.
So, with that said, we’re going to look at getting in long towards an upside target of 10670 if we see price close above resistance. A stop on the trade at 10530 looks good from a risk management perspective.
Looking short, a close below support will signal a downside entry towards 10250.
Let’s see how things play out.
Charts courtesy of Trading View