As a general rule, once we get into a trade in the Bitcoin markets—and according to our intraday strategy—we don’t get into another before the markets take us out automatically (either via a stop hit or a target hit). As such, and as we head into this evening’s Asian session, we are not going to be taking a position, because we got into a long trade on the breaking of in term resistance a little earlier.
With that said, this analysis isn’t just for us—its for our readers, as well—and for those who aren’t yet in a trade, here are the levels to keep an eye in in the Bitcoin price this evening, alongside a definition of our risk parameters. As ever, take a quick look at the chart below.
As you can see, we have shifted our range a little to the upside on this morning’s definition, in order to accommodate today’s action. In term support sits at $437—a level that has served as both support and resistance in the past—while in term resistance comes in at our most recent swing high of $446. These two levels define tonight’s range.
We are going to work with our breakout strategy primarily, so we will initially look for a break and a close above in term resistance to validate a long entry with a target of $455. This trade falls in line with the overarching bullish momentum, so we can afford to be a bit aggressive in our target placement. A stop loss somewhere in the region of $442 defines our risk nicely.
Looking the other way, if we break below in term support, it will put us in a short trade towards a medium term downside target of $428.39, with a stop (once again) somewhere around $442 defining our risk.
Charts courtesy of Trading View