This morning we published the first of our twice daily bitcoin price watch pieces, and noted that – as a result of the relatively tight range we were looking at – we would steer clear of our intrarange strategy in favour of our standard breakout approach. We also suggested, however, that a more aggressive trader might want to look at incorporating intrarange action into their approach if we saw a correction from resistance, or a bounce from support. Action has now matured throughout the European session, and as it turned out, the more aggressive approach looks to have been the one to take. We bounced form support a little earlier on this morning, and have since rallied to reach (but not close above) resistance. Similarly, (but conversely) we have now corrected from resistance, and look to be headed back down towards support.
The failure to close above 325.40 meant we are not in a trade as things stand, and we still maintain that the intrarange is a little too aggressive (despite it serving up some nice trades today) so we will, once again, look to enter only on a breaking out of our predefined range as we head into this evening and tonight’s Asian session.
The levels to watch remain as they were, with in term support at 320.39 and resistance at the aforementioned 325.40.
We will look for a break above in term resistance to put us in a long trade with an initial upside target of 330. Again, and as noted this morning, a stop loss somewhere around 323.5 gives us a nice risk to reward profile on the trade.
Looking to the downside, if we get a close below in term support at 320.39, it will put us in a short trade towards 315 flat. A stop circa 321.5 (a little tighter than this morning’s trade) will keep things attractive from a risk management perspective.
Charts courtesy of Trading View