In this morning’s analysis we noted that the bitcoin price has ranged throughout the majority of the week so far, and that – aside from a decline overnight on Sunday – we pretty much remained within the parameters we defined early Monday morning. We also highlighted the fact that during today’s session we would like to see some volatility from which we could get in or out of the markets according to our breakout position. Action has now matured throughout the day, and – while we did see some volatility – it did not come before we were stopped out of our trade. Having said this, we are now back into the trade, and we are looking long in the bitcoin price this evening. So, with all this said, what are the levels that were keeping an eye on tonight, and where will we be looking to exit the current trade? Take a quick look at the chart.
As you see, from support earlier this morning around 225.99 (what served as in term support during today’s European session) the bitcoin price traded upwards to break in term resistance at 229.16 midday. However, having closed just above this level, we quickly returned to trade back within range and took out our stop loss. Some tight trading in followed, and we are now trading back above in term support on another long entry towards a medium-term target of 232.49. We’ve got our stop loss set at 228 flat, giving us about a 2 to 1 risk reward profile on the trade. For those who are not yet in a trade, you could consider entering from what now serves as in term support at 229.162 towards our target (and this evening’s in term resistance) at 232.49.
Charts courtesy of Trading View