Bitcoin Price Volatile; Action Ahead!

Volatility, volatility, volatility. That’s all we seem to talk about these days. The bitcoin price has moved more in the last few weeks than it has in the last few months, and while this has given us plenty of opportunity to draw profit from the market on our intraday strategy, we have also been chopped out on more than one occasion. This said, that’s why we use stop losses, so we needn’t complain. We are now heading into the final weekday session, and things are looking as if we are going to get a continuation of the action we’ve seen as late. So as we kick off the day, what are the levels we are watching in today’s bitcoin price, and where are we looking to get in and out of the markets according to our intraday strategy?

Take a quick look at the chart below.

Screen Shot 2015-11-13 at 13.02.10Screen Shot 2015-11-13 at 13.02.10

As the chart shows, the two levels we are watching for today’s session are in term support at 322.86 and in term resistance at 332.21. These are going to be the key levels during today’s European session.

We will incorporate both our breakout strategy and our intrarange strategy today – is we will initially look for a break above in term resistance to validate a medium term upside target of 341.92. Conversely, a correction from resistance will put us short towards in term support, wit ha stop just the other side of our entry ensuring we are taken out of the trade in the event of a bias reversal.

If we close below in term support at 322.86, we will look to go short towards a short term downside target of 317. On this one, a stop loss somewhere in the region of 324 flat will keep things attractive from a risk management perspective.

Charts courtesy of Trading View