Bitcoin Price Holds; Range In Play

In yesterday’s bitcoin price watch piece, we outlined our intraday strategy according to an altered approach. We suggested that – as a result of the relatively consistent fluctuations in the bitcoin price over the last few days, we would widen out our range a little and trade long from support and short from resistance, in an attempt to draw profit from intra range volatility. The strategy paid off and, as a result as we head into today’s European session, we will incorporate the possibility for a range trade into today’s plan of attack. So, with this said, here are the levels we are looking at today, and how we are looking to play them. Take a quick look at the chart.

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As you can see, in term support for today sits at 242.08, while in term resistance holds at 244.75. These are the two levels we will be watching during today’s session. First, the breakout strategy. If we get a break below in term support it will put us short towards a medium term target of 237 flat. A stop loss just the other side of our entry will ensure we are taken out for a small loss in the event of a bias reversal. Looking the other way, a break above 244.75 will put us long towards 247.14.

From an intra range perspective, if we bounce from support without breaking the level, we will look to enter long toward resistance initially, with a stop just below support keeping things attractive from a risk management perspective. Similarly, a correction to the downside from resistance will put us short towards support for about two and a half dollars’ worth of reward. A stop just above resistance, somewhere around 246 flat, should just about give us a positive risk reward profile.

Charts courtesy of Trading View – leading Bitcoin News source since 2012