Bitcoin Price Breaks to the Upside; Long Entries On!

In this morning’s bitcoin price watch piece, we are going to take a look at the levels that proved important overnight, and try and attempt to put together a strategy for today’s intraday trading throughout the European session. Its been a lively few days in the bitcoin markets, and with the launch of the NewsBTC Live Trading Room looming, it’s a great time to get some volatility. So, with this said, here’s what we are watching today, alongside a definition of our risk management parameters for today’s session. First up, as ever, take a look at the chart to get an idea of what we’re watching.

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As you can see, today’s key levels are in term support at 356.83 and in term resistance at 369.95. These are the ones that define today’s range, and in turn, are the ones to keep an eye on today. As usual we will bring our intraday breakout strategy into play, and with it being a relatively wide range, we can also incorporate our intrarange if action dictates an valid entry.

We will initially look for a break above in term resistance, and a close above this level to the upside, to put us long towards an upside target of 375 flat. A stop on this one somewhere in the region of 367 will keep things straight from a risk management perspective.

Looking the other way, a close below in term support will put us in a short trade with an initial downside target of 340.61 – the bitcoin price’s most recent swing low. This is quite a far reaching trade, so we can afford a few extra dollars’ worth of risk. A stop loss somewhere in the region of current levels – say 361 – works nicely.

From an intrarange perspective, long at support and short at resistance, with a stop just the other side of our entries to define our risk.

Charts courtesy of Trading View