Overnight action in the Bitcoin price has been pretty choppy. Having outlined our predefined range yesterday evening, we were hoping to be able to draw a profit from our intrarange strategy. We did reach support at the turn of the night, but broke through it ever so slightly to log a close below. This put us in a short breakout trade that, unfortunately, got stopped out an hour or so after entry.
We are currently trading midrange on a slightly tightened range (which we will outline shortly), and plan to bring both our intra and our breakout strategy into play for today’s bitcoin price trading. So, with this said, here’s what we are looking at during today’s European session. First up, take a quick look at the price chart below; it shows action in Bitcoin’s price from the last couple of days, on a 15-minute intraday timeframe.
As the chart shows, the two levels that define today’s range are in term support at 355.82 and in term resistance at 362.15. This is a pretty tight range, so if we are to bring our intrarange strategy into play it’s going to have to be accompanied by some pretty tight risk parameters.
First up, however, let’s look at breakouts. If we get a close above in term resistance it will put us long towards an upside target of 370 flat, with a stop somewhere around 360 flat defining our risk. To the downside, a close below 355.82 would put us short towards 348.59. A stop on this one at 358 keeps our risk reward profile positive.
On the intrarange side of things, a bounce from support will put us long towards resistance, while a correction from resistance puts us short towards support. Stops just on the other side of either levels are in question.
Charts courtesy of Trading View