Bitcoin Price Consolidates; Staggered Trade on

It’s been a few hours since we published the first of today’s bitcoin price watch pieces, and after the crazy action we saw in the overnight session last night, things have normalized somewhat during today’s European session. We traded to lows just ahead of 364 earlier this morning, having reached 500 flat a day earlier. During todays session, however, we have recovered some of the losses and now trade at or around 400 flat – a level that is likely going to have some significance from a psychological perspective going forward. With this said, what are the levels we are looking to trade during tonight’s Asian session, and where will we be looking to get in and out of the markets form a risk management, target definition perspective? First, as ever, take a quick look at the chart below.

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As the chart shows, in term support for today’s session remains as the level to watch to the downside this evening – coming in at 368.15. This level has not been tested yet today, aside from a brief spike down post-lows, so there is no real reason to alter it tonight. In term resistance has altered slightly to accommodate the day’s action, and sits fresh at 408 flat. This will likely become the more pertinent of the two key levels going forward.

We will initially look for a break and a close above this level to validate a long entry towards a long term target of 448.58. This is a very aggressive trade, so as we mentioned this morning, if you are looking for a more conservative way to play action to the upside, you could do one of two things. First, stagger your entry, and enter half a position towards a shorter term target (420, say) and then enter a second half at 420, closing out the initial trade for a profit. Second, enter a full position, and shift your stop loss up to your entry point upon reaching 220. This will make the trade risk free and still give you as much reward potential as you had on the initial entry.

Charts courtesy of Trading View