As we mentioned in our last few bitcoin price watch analysis piece’s, action over the past couple of days has been relatively muted. We have seen something of a stabilization following the volatility that we saw at the beginning of the week, and this has presented us with relatively few trading opportunities – at least as far as our scalp strategy is concerned. With this said, there is still an element of intra-range strategy that we can incorporate if things remain as are. So, as we head into Thursday evening, what are the levels we are keeping an eye on in the bitcoin price now, and how can we employ both the breakout and an intra-range strategy moving forward? Take a quick look at the chart.
As the chart shows, we have ranged today between in term support at 226.81 and resistance at 230.79. These two levels define our range, and remain the ones to keep an eye on as we head into this evening and beyond. We are currently trading mid-range, so let’s look at an intra-range strategy first.
If we can hit 230.79, we will look for rejection of this level (i.e. a return to downside momentum) to validate a short entry towards the aforementioned in term support of 226.81. On this trade, a stop loss somewhere around 232.5 will maintain a positive risk reward profile in case we get a break out.
Looking the other way, if we bounce from support at 226.81, it would give us an excuse to enter long towards 230.79, with a stop loss somewhere around 225.50 protecting us to the downside.
From a breakout perspective, a close above 230.79 would put us long towards 234 as an initial upside target. Conversely, a close below 226.81 would put us short towards an initial downside target of 222.54, with a stop loss somewhere around 228 flat maintaining a positive risk reward profile.
Charts courtesy of Trading View