Trying to figure out which way the bitcoin price is heading has been a tough task as late. There’s been no real overarching directional bias – the bitcoin price has ranged consistently with the exception of a few sharp breakouts. As such, we’ve been implementing our intraday breakout strategy in combination with predefined risk levels in order to try and draw a profit from the spikes. This has fared pretty well over the weekend, and as we head into a fresh day’s trading, we will carry the same strategy forward today. So, with this said, what are the levels we are looking to trade this European session, and where we will look to get out of the markets in the event that our strategy puts us in to a long or short position? Take a quick look at the chart below.
As the chart shows, action overnight continued the trend we have seen so far this week, with relatively flat consolidatory action confined within a pretty tight range. As we head into today’s session, the levels we are watching are in term support to the downside at 328.02 and in term resistance at 341.99. Since we have a relatively wide range to play with, the opportunity fur intrarange strategy is open. If we reach resistance, it will give us an opportunity to go short (assuming we don’t break to the upside) towards in term support as a downside target. On this trade, a stop loss just the other side of resistance – around 346 flat – gives us plenty of wriggle room for our risk management.
If we do break this level to the upside, it would validate an upside entry (on a close above it) and an initial upside target of 356.10. Again a stop loss is needed, and somewhere around 338 would work nicely.
Charts courtesy of Trading View.