Shortly before the markets opened in Europe this morning, we published our twice-daily bitcoin price watch piece here on NewsBTC. In the piece, we suggested that – with the recent volatility we had seen in the bitcoin price over the weekend – we could benefit from adapting our traditional intraday breakout strategy to take advantage of an intra-range entry, as defined by both in term support and resistance. We also highlighted the potential for a breakout entry, and suggested that – according to the same levels we were watching for our intra-range entries – we could get long or short if we saw any decisive movement. Now action has matured, what are the levels that we are watching this evening, and did we manage to get in and out of the markets according to either strategy during today’s session? Take a quick look at the chart.
As the chart shows, we have had something of a choppy day. We initially reached and corrected from in term resistance, which put us short towards an intraday target of support at 274.61. However, we quickly reversed and returned to trade above resistance on a breakout. We did not enter on the breakout, as we were already short, and the choppiness took us out of the trade according to our stop loss. During this afternoon, we returned to trade within the range, and – having once again broken out of resistance – trade currently just ahead of 278.10.
We will be looking for one of two entries as we head into the Asian session this evening. If we can get a decisive break back above resistance and a close above this level, we will look to enter long towards a short-term upside target of 280 flat. This is a tight trade, so tight stop loss is warranted, with 277.5 looking ideal. Conversely, if we remain below resistance, we will enter short towards in term support at 274.61.
Charts courtesy of Trading View