We’re closing in on the end of the week and, as far as the bitcoin price is concerned, there’s a strong chance that this week will be remembered for being the week that the market finally bottom out and things started to resume an upside trajectory.
Right now, price is trading in and around the top end of its twenty-four-hour range and, with any luck, we’ll see a continuation of this trend near term and, in turn, a break of recent highs to send price into fresh weekly strengths.
So, right now, we’ve got to set up a couple of positions that we can use to jump in and out of the markets if we get any of the sort of movement we are after. So, with this said, let’s get down to the key parts of our strategy.
As ever, take a quick look at the chart below before we get started so as to get an idea where things stand heading into the European session.
The chart is a one-minute candlestick chart and it’s got our primary range overlaid in green.
As the chart shows, then, the range that we are looking at for the session this morning comes in as defined by support to the downside at 8299 and resistance to the upside at 8500.
We’re sticking with our standard breakout strategy for the time being, so we’ll jump in long if we get a close above resistance. The trade will have an upside target somewhere in the region of 8600 and we’ll have a stop loss at 8450 to ensure we keep our risk tight.
Looking the other way, if we get a close below support, we’ll jump in short towards a downside target of 8150.
A stop on this one at 8340 works well from a risk management perspective.
Let’s see how things play out.