So earlier this morning we published our twice daily bitcoin price watch piece. In the article we noted that – as a result of all the volatility we have seen over the last few weeks – we would look to implement our breakout strategy on any break of our predefined key levels. Action has now matured throughout the day, and as we head into tonight and the Asian session, what are the levels we are watching in the bitcoin price now, and how did our strategy fare today? Take a quick look at the chart below.
As the chart shows, action from today’s session has been pretty flat compared to that of previous sessions. Between the publication of this morning’s analysis and now, we have ranged pretty much within a tight 5-6 dollar range, without reaching (yet alone breaking) in term support or resistance. This means we haven’t had the opportunity to get in to any trades, and in turn, enter the Asian session flat.
In light of the day’s consolidatory action, the levels we are watching tonight remain unchanged from those we defined this morning – in term support 314.61 and resistance at 328.02. This is tonight’s predefined range.
If we can get a break above in term support, we will simply look to – once again – mirror the trade we discussed a little earlier on today – long on a close above towards 341.99 to the upside, with a stop loss around 324 maintaining a positive risk reward profile on the entry.
Looking the other way, a close below in term support will put us in a short position towards 305 flat – again mirroring this morning’s predefined position. A slightly tighter stop is necessary on this one, somewhere around 317.5 looks like it would do just fine.
Charts courtesy of Trading View