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Throughout the majority of May and June, getting in and out of the markets according to our intraday strategy and taking a profit from volatility in the bitcoin price was relatively simple. Sure, we were stopped out on a number of occasions, and every trade wasn’t a winner, but we got enough up-and-down action to ensure that – regardless of the outcome – we were at least afforded a position. Over the last couple of weeks, however, volatility in the bitcoin price has been pretty flat and potential entries relatively non-existent. We have taken a position on a couple of occasions, but rarely more than one per day and often resulting in being chopped out. However, with this said, market conditions are always likely to change, and it is at times like this that we must maintain our strategy to position ourselves to take advantage from any near-term condition alterations that return us to the volatility we enjoyed over the last couple of months. So, with this in mind, what are the levels we are keeping an eye on in the bitcoin price today, and how can we get in and out of the market according to our standard breakout strategy? Take a quick look at the chart.
The first thing you will notice is that today’s range is very tight. We have in term support at 276.20, and resistance at 278.30. This two dollar range will be one that we keep an eye on during today’s session. We will initially look for a break above 278.30 to validate a very short-term target of 279.79. A tight target warrants a tight stop, so somewhere around 277.80 will keep things attractive from a risk management perspective. Looking the other way, a break below 276.20 would bring 274.99 into play medium-term. Again, this is a tight entry, so a stop loss somewhere around 276.80 will help us to maintain a positive risk reward profile on the trade.
Charts courtesy of Trading View
