A little earlier on today, in our morning bitcoin price watch piece, we noted that the overarching momentum in the bitcoin price was to the downside, and that we would incorporate this into our intraday breakout strategy as we headed into a fresh week’s trading today. Action has now matured, and we have seen a continuation of the trend, as expected. However, pre-decline, we got a little bit of upside momentum, and this put us in a long entry according to our predefined entry levels (outlined earlier here). Unfortunately, we were quickly taken out of the trade, as price reversed to trade back within our range shortly after the initiation of the position. So, with this said, what are the levels we are looking at in the bitcoin price market tonight and – as we head into the Asian session a little later on – what are we watching? As always, take a quick look at the chart to get an idea of our key levels.
As the chart shows, tonight’s range is defined by two of the levels we noted this morning – in term support at 425.53 and in term resistance at 441.72. With these levels in focus, we are going to initially look for a break below in term support (followed by a close below this level) to put us in a short trade towards 415. This is a bit of an aggressive entry, which gives up plenty of room for our stop loss – somewhere in the region of 446 flat looks to be ideal.
Looking the other way, if we get a longer term reversal and a return to last week’s overarching bullish momentum, a close above in term resistance will once again put us long towards 454 flat – a replica of the that stop-hit earlier on this afternoon. On that note, a stop around 438 works well from a risk management perspective on this long entry.
Charts courtesy of Trading View