Its been a bit of an odd day in the bitcoin price markets. Having initially kicked off the European session with some interim gains, the bitcoin price reversed pretty sharply from intraday highs and collapsed to reach lows just shy of where things currently sit. This has two implications for tonight’s session. The first, that we have a nicely defined intraday range that gives us something solid to trade throughout Asia. The second, that in spite of this range, its going to be difficult to form a central bias – at least near term. Without any consistency in overarching momentum, we are going to head into tonight’s session with a completely open mind. This isn’t necessarily a disadvantage – we set up our strategy to incorporate exactly this type of uncertainty – it just means we need to keep things tight from a risk management perspective, in case things turn against us sharply. So, with this noted, and as we head into tonight’s trading, what are the levels we are looking at, and where will we define our parameters to keep things locked in on the risk side of things? As ever, get a quick look at the chart to see what we’re focusing on.
As you can see from the chart, and as mentioned already, the two levels that define our range are intraday highs at 443.54 as in term resistance and intraday lows at 434.50 as in term support.
If we get a break above resistance, we will look for a close above this level to validate an upside entry with an initial target of 450 flat. A stop in the region of 442 flat keeps our risk nice and tight.
Looking the other way, a close below 434.50 will put us short towards 430. This is slightly less reward than on the upside trade, so a tighter stop is necessary.435.5 looks good on this entry.
Charts courtesy of Trading View