In this morning’s bitcoin price watch piece we suggested that we would be looking for a continuation of the volatility we saw last week. If we got this volatility, we would take ad advantage and get in and out of the market according to our intraday breakout strategy. Action has now matured throughout the European session, and – as we head into engaging evening – what of levels that were keeping an eye on now, and did we manage to get in and out of the markets during today’s session? Take a look at the chart to start.
As you can see, action during today’s session has ranged between what now serves as in term support at 224.39 and resistance at 231.40. These two levels are intraday lows and highs respectively. Since action looks to be relatively slow, we are going to look to employ our intra-range strategy on tonight’s action.
So, we will look to enter at current levels short with a medium-term downside target of in term support. On the trade, a stop loss somewhere around 233 flat should help us to maintain a positive risk reward profile.
Looking the other way, if we reach in term support and bounce, we will look to enter long towards in term resistance, with a stop loss around 222 flat keeping things attractive from a risk management perspective.
If we do break above in term resistance, we could enter long on a break out trade towards a short-term upside target of 234 flat. There is too much room here, so tight stop loss is required – somewhere around 230 flat should do nicely.
Charts courtesy of Trading View