Bitcoin Price Watch; Stop Loss Hit

Here's what we are looking to trade in today's bitcoin price. Intraday, breakout strategy.

Yesterday evening, we noted that in response to the action we had seen in the bitcoin price throughout the Monday morning and early afternoon sessions, we would maintain the previous session’s range in an attempt to draw a breakout profit. We highlighted some pretty tight targets, and let things play out. Unfortunately, things didn’t turn out quite how we had hoped they might. As you’ll see from the chart in a second, action overnight saw a break of our pre-slated support level, which put us short towards an initial downside target of 426.5. Post-break, we got a nice selloff, and it looked like we were in for a swift target hit on the position. Shortly before our target (circa one and a bit dollars), however, the bitcoin price reversed and corrected to the upside to trade back within range. In doing so it took out our predefined stop, and we exited the trade for a small loss.

We are now trading back within the range we defined yesterday, and so with a slightly amended risk parameter, we re going to maintain yesterday afternoon’s approach – breakout towards some relatively tight scalp targets. Get a quick look at the chart to see what we are focusing on this morning.

Screen Shot 2016-03-01 at 10.41.31

As the chart shows, the levels we are looking at are in term support at 432 flat and in term resistance about five dollars north, at 438 flat. These are our two focus levels today.

We will watch for a break and a close above in term resistance to validate a bullish entry towards 442 – a level we have been targeting for a few mini sessions now but as yet haven’t had any luck.

To the downside, a close below support will put us short towards, again, 426.5. A stop on this position somewhere in the region of 433 flat defines risk nicely.

Charts courtesy of Trading View

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Published by

Samuel Rae

Samuel is a currency trader, author and contributor to a number of the leading forex market publications including Futures Magazine, FX Trader Magazine and Spreadbet Magazine. He is a an avid bitcoin enthusiast with a real interest in how cryptocurrencies are likely to affect global economics in the future.