In this morning’s bitcoin price watch piece, we highlighted a few of the levels that we would be keeping an eye on during today’s session. We noted that if we got some volatility, we would look to enter according to our intraday breakout strategy and, using predefined risk parameters, try and draw a profit from the market. Action has now matured throughout the session, and as we head into the Asian open, how has our strategy fared and what are we looking at going forward? Before we answer both of these questions, take a quick look at the bitcoin price chart.
This morning we were looking at 284.6 as our in term resistance level. Around midday GMT we broke this level to the upside, then closed above it putting us long towards 290 flat. However, almost as soon as we entered, price broker back below resistance and took us out of the trade for a small loss. We now trade between a fresh in term resistance of 285.79 (intraday highs) and what serves as Monday night’s in term resistance at 281.7. These will be the two levels that we watch as we head into this evening’s session.
We will initially look for a break above in term resistance to (once again) but us long towards our earlier upside target of 290 flat. There are about five dollars’ worth of reward to be had here, so a 1.5 dollar stop loss leaves us with an attractive risk reward setup – somewhere around 285 flat should do the trick.
Looking the other way, a close below 281.7 would put us short towards a medium term target of 279.3. A stop loss on this one around 282.5 keeps things tight from a risk management perspective.
Charts courtesy of Trading View