So we’ve got a fresh day’s trading ahead of us in the bitcoin price today, and after the rollercoaster couple of weeks we’ve experienced as late, its become a bit difficult to form an intraday bias (at least from an overarching momentum perspective). With this said, however, our intraday strategy doesn’t necessitate a bias – we can bring our breakout strategy into play and use this take advantage of volatility either side of current action. So, moving forward into today’s session, what are the levels that we are keeping an eye on in the bitcoin price today, and where will we look to get in and out the markets today? Take a quick look at the chart.
As you can see, the two levels that we are watching during today’s session are in term support at 373 flat to the downside and in term resistance to the upside at 386.75. This is quite a wide range, and as ever when we have a wide range in play, we can look to bring our intrarange strategy into play. Specifically, if we get a bounce from support it will put us long towards resistance, and vice versa on a correction from resistance.
Looking at the breakout side of things, a break above resistance would validate a medium term upside entry towards an initial target of 392. A stop loss on this one, somewhere around 384.5, will ensure our risk profile remains attractive.
To the downside, a break (and a close below) in term support would put us short towards a slightly shorter term target of 365.22. Because this is more of a scalp trade, a slightly narrower stop is required to maintain a positive risk to reward ratio. We’ll be looking at somewhere around 366.5 if we get into this one.
Charts courtesy of Trading View