Trying to trade the bitcoin price over the last few days has been pretty tough. Since the weekend – and in particular since the decline we saw heading into Monday morning session – we’ve pretty much been ranging sideways, but without doing so between any specific parameters. Having said this, our downside range now looks pretty consistent – especially when taking into consideration Tuesday night’s Asian session. The question today will be whether we can take advantage of what looke like the levels to employ a breakout strategy as we head into a fresh European session. So, with this said, let’s take a look at what we are watching today, and see where we can look to get in and out of the markets according to our strategy. Take a quick look at the chart.
As you see, the levels we are watching are 225.99 as in term support (a level that has seen a test and failure over the last 48 hours about three or four times) and 229.16 as in term resistance. This is the level that we broke during yesterday’s session and have since traded below (having tested a few times).
We will initially look for a break above 229.16 to put us long towards a short-term target of 232.49. This is something of a scalp trade given that there are only three dollars worth of profit, so a tight stop loss is warranted. Somewhere around 228 flat (just below current levels) should do the job.
Looking the other way, if we continue the overarching bearish momentum and get a break below 225.99, we will look for a close below this level to put us short towards 220 flat. This one is little wider trade – something like six dollars worth of reward all accounted for – so with very little bit more room to the upside. A stop loss again somewhere around 228 flat should do the trick as far as keeping a positive risk reward profile is concerned.
Charts courtesy of Trading View