Earlier this morning, we published out twice daily bitcoin price watch piece, with a twist. We left it a little later to publish, with the goal of altering our strategy to accommodate a range trade approach, instead of our usual breakout strategy. Action has now matured, and the Asian session will kick off shortly. As we head into the beginning of the session, how has our strategy fared already today, and is it worth maintain this approach going forward? Take a quick look at the chart to get an idea of what we are watching tonight.
As you can see, the levels we defined this morning as our range binding parameters remain in place during this evening’s session. When we published earlier, we noted that the bitcoin price had tested in term support once already, and that we had two options. The first, to enter on an aggressive range trade towards in term resistance at 272.99, with a stop just the other side of support as a risk management tool. The second, to wait on a retest of support (a slightly more conservative approach) and enter the same trade on this confirmation. We got the second test a short while after we published, and so both our aggressive and conservative entries were valid. We are now long towards in term resistance, with a stop in place accordingly. This trade should hold firm until it is seen through, with the two outcomes being a stop loss takeout (262 flat) or a profit hit at 272.99. If we reach resistance, we could look for a reversal entry and get in short back down towards in term support, with a stop just above resistance. For those looking to tighten things up a little, a shorter term initial target could allow us to draw a profit on the closing of half a position, shifting up the stop loss to the entry point and in doing so, taking risk off the table. Somewhere around 270 would work nicely on the current long entry.
Charts courtesy of Trading View
