Bitcoin Price Tests Range, Fails; Now What?

In this morning’s bitcoin price watch piece, we highlighted the levels that we would be watching throughout today’s session, and suggested how we might respond to price reaching or breaking these levels as far as getting into a trade on our intraday breakout strategy was concerned. We noted that – despite some fundamental drivers out of Europe – the bitcoin price had remained relatively flat over the last few days, since its spike and decline on Sunday – Monday. So, with this said, what are the levels that we are watching during this evening’s Asian session, did we get any action today that we managed to enter on according to our strategy, and what will we be looking at if we do manage to get into a trade?

bitcoin price2

As the chart shows, action today has remained well within the range we predefined this morning – with in term support still at 285.96, and in term resistance at 297.14. For those looking for an aggressive scalp trade, we could tighten these parameters and put in term resistance somewhere around 294 flat and support somewhere around 292 flat, however, this is not for us this evening.

We will remain as we did this morning, and look for a break above 297.14 to put us long towards a medium-term upside target of 310 flat. A stop loss somewhere around 294 flat on this trade will maintain a positive risk reward profile on the trade, whilst also ensuring we have enough room to avoid being chopped out in the event that we return to trade mid-range medium-term.

Looking the other way, if we can get a break below 285.96, it would put us short towards 280 flat. Once again, a stop loss somewhere around 288 on this trade would give us around three dollars worth of risk, while keeping reward slightly higher at around six dollars flat.

Charts courtesy of Trading View

 

Source

TheBitcoinNews.com – leading Bitcoin News source since 2012