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On our coverage of the bitcoin price earlier this morning, we noted that we were hoping to see quite a lot of volatility during the session today. When we get volatility, it gives us an opportunity to get into the markets as the key levels we set up in advance of our strategy execution get breached and – in turn – our entries get signaled. What we also like to see, however, outside of just volatility, is some momentum post-breakout. What that means is that we like to see price signal an entry but then – subsequently – continue to run in the direction of the break.
As it turns out, we did manage to get some of the type of action we were looking for. Things moved pretty fast early on and were able to jump in quickly as and when our position got signaled.
We’re about to close out the session in Europe and move into the US session this evening. With any luck, we’ll see a continuation of the action we’ve seen today, moving forward. If it doesn’t happen, it’s not too big of a deal – we can trade intrarange if we don’t see any sustained momentum – but it would be a bonus if it does.
So, let’s get our levels in place so that we can be ready if and when things move. 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 our range overlaid in green.
As the chart shows, the range we are looking at for the session comes in as defined by support to the downside at 7424 and resistance to the upside at 7515.
If we see a close below support, we’ll jump in short towards 7380. Conversely, a close above resistance will have us in towards 7585.
Let’s see how things play out.
Charts courtesy of Trading View