It’s that time of day again—time to pitch our intraday strategy against the volatility in the Bitcoin price. Over the last few days, we have had a mixed bag of luck, with some entries hitting targets and some stops taking us out for a loss. By maintaining a positive risk reward profile, however, we have stayed net profitable.
With a few big moves dictating action this week, things have been a little hard to predict. One minute the Bitcoin price will consolidate, and remain so for a day, then all of a sudden we will get a sharp break in either direction and the price will jump twenty or thirty dollars in a matter of minutes. This is, of course, exactly the type of action our breakout strategy is designed to take advantage of, so we won’t complain!
So, with this said, 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 of the markets if we get some action? As ever, take a quick look at the chart to get an idea of what we are watching.
As the chart shows, the two key levels as we head into today’s European session are in term support at $407.55 and in term resistance at $419.03 to the upside. We are currently trading mid-range, so let’s look at the upside scenario first.
A close above in term resistance will put us in a long position towards an immediate upside target of $425.02. This is a pretty tight scalp trade, so a tight stop is necessary—somewhere around $416.5 should do the trick.
Looking the other way, a close below in term support at $407.55 will put us short towards $400 flat. A stop on this one in the region of $409 keeps things attractive on the risk management side of the trade.
Charts courtesy of Trading View