Bitcoin Price Tanks; Now What?

Tracking the bitcoin price over the past few weeks has been tough. Despite bouts of overnight volatility, we have seen very little in the way of sustained trend, meaning our breakout strategy has put us in trades but without sustainable movement, hasn’t carried us to our take profit levels. Over the weekend, however, we did get a little bit of interesting action, and it could be a sign that that as we head into a fresh week’s worth of trading – there may be more action to come. So, with this said, let’s take a look at the action we saw over the weekend, and outline the levels we are going to keep an eye on during today’s session in order to try and draw profit from the market with our intraday strategy. First, take a quick look at the chart.

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As you see, having reached highs of 234.98 over the weekend, the bitcoin price corrected decline all the way down to what now serves as in term support at 226.03 for today session. In term resistance sits at 231.70 – last night’s swing high.

If we can get a bounce from current levels, we will look to enter long on an intro range strategy with an initial upside target of 231.70, a stop loss around 225 flat. Conversely, a break below in term support (and a close below this level on the intraday chart) would put us short towards 220 flat as a slightly longer-term downside target. Once again a stop loss is necessary on this one, somewhere around 227.5 will help us to maintain a positive risk reward profile while still leaving us plenty of room to avoid being chopped out.

Looking to the upside, a break above 231.70 will put us long towards 234.98, with a stop loss somewhere around 230.5.

Charts courtesy of Trading View

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