Its been a strange week in the bitcoin price/cryptocurrency trading space. Without any real fundamental catalysts, the bitcoin price has both gained and lost strength, and in doing so, given us some nice volatility to trade on. Having said this, last night’s action has somewhat bucked the trend – the bitcoin price maintained a range and traded sideways. What implications this has for today’s action is unclear as yet – though it does give us some concrete levels to keep an eye – and in turn – to strategize based upon – as we head into today’s European session. We’re going to bring our intraday breakout strategy into play today, but our predefined range is a little tight to attempt any intrarange trades, so breakout is all we’ve got on today’s action. So, as we head into a fresh European session on Wednesday, what are the levels we are looking at during today’s session, and where will we look to get in and out of the markets on any volatility? As always. Take a quick look at the chart to get an idea of our predefined range.
As the chart shows. Today’s rage is defined by in term support at 434.50 to the downside, and in term resistance at 438.44 to the upside. These are the levels that we’ve got in focus today.
We will initially look for a break above in term resistance to validate an upside entry towards a bullish, medium term target if 443.54. This is a pretty tight target, so a pretty tight stop is warranted. Somewhere in the region of 436.50 should do the trick.
Looking the other way, and bringing our scalp strategy into play, a break below 434.5 will put us short towards 430 flat, with a stop loss at 436 keeping things attractive from a risk management perspective.
Charts courtesy of Trading View