In this morning’s bitcoin price watch piece, we commented on the action we had seen overnight in the bitcoin price, and suggested that – in response to the upside volatility from the bitcoin price seen as late – we would widen out our parameters and bring an intrarange approach into play. Action has now matured throughout the European session, and as we head into the weekend and the Asian daytime, where are we looking to get in and out of the markets, did our intrarange strategy garner any results today, and what do we expect from bitcoin near term? First up, as usual, take a quick look at the chart to get an idea of our key levels.
As the chart shows, the levels we are looking at tonight remain essentially unchanged from those we have been watching today. In term support sits at 314.46, and resistance comes in at 333.93. In this morning’s piece, we noted that we would enter on a bounce from support towards a medium term upside target of 320 flat. This trade worked out nicely, and we took our profit at the targeted level. We are currently trading mid range (weighted towards support) and we maintain our intrarange strategy going forward.
Specifically, if we get another run down towards in term support we will look to enter long towards 320 once again. A more aggressive entry would be to target resistance, but we’ll take the more conservative approach this time. If we run up towards resistance at 333.93, we will look at two different entries.
The first, a long position on a break and close above the level. On this one a stop loss around 330 flat and a target of 340 defines our risk and reward nicely.
The second, a correction from resistance would put us short towards a downside target of 324, with a stop just above resistance keeping this attractive from a risk management perspective.
Charts courtesy of Trading View