Bitcoin Price Watch; Breakout on Tonight…

bitcoin price. Breakout Looming. newsbtc

Earlier on today, we looked at the downward sloping channel that was forming in the bitcoin price, and suggested that – as a result of the fact the price was trading just shy of the channel’s resistance line – we may be in for some near term short side action. The European session is now drawing to a close, and we are heading towards the mid US afternoon and – later – the Asian open tonight. How can we use what we saw in today’s bitcoin price market to set up against any potential volatility going forward? Take a look at the chart below to get an idea of what we are watching, and where our targets and risk management parameters come in to play. The chart is a fifteen minute, intraday candlestick chart that shows the last thirty-six hours or so of price action.

Screen Shot 2016-03-28 at 16.32.28

As the chart shows, we are looking at 421.25 to the downside as in term support, and 424.52 to the upside as in term resistance. It’s a tight range, so we wont be looking at anything intrarange for now – instead we’ll be focusing strictly on breakout entries.

As per the standard rules of our breakout strategy, if the bitcoin price closes above in term resistance, it will signal a long entry. We’ll get into the market with a target of 428 flat (highlighted), and use a stop loss somewhere in the region of 422.5 to keep things tight from a risk management perspective.

Looking short, a close below in term support will signal a short entry towards an initial downside target of 415 flat. This one is a little more aggressive (as determined by the overarching trend), so we’ve got a little bit more room to play with on the risk side of things. With this said, a stop at 423.5 works to minimize our upside risk nicely.

Charts courtesy of Trading View

Subscribe to our newsletter

Related Posts