In yesterday evening’s bitcoin price watch piece, we published the levels that we would be looking to keep an eye on throughout the evening’s session. We noted that – when compared to the steep decline we saw over the weekend – action throughout the first 24 hours of this week has been pretty mute, and that we may look to implement an intra range strategy if things remained so. Well, action overnight has once again been pretty disappointing, and today’s strategy looks like we’re going to have to tighten things up as far as looking to get in and out markets according to our intraday strategy is concerned. So, with this said, what are the levels that we are watching in today’s bitcoin price, and where can we look to draw profit from any movement? Take a quick look at the chart.
As you see from the chart, today’s action is all about close-knit trading. The two levels that we are watching to the upside and the downside as our intraday range are 263.05 as in term support and 266.78 as in term resistance. We are currently trading closer to the latter, so we will look at an upside trade first.
If we can get a break above 266.78, it will bring 268.96 into play short-term. There is only about two dollars’ worth of reward here, so a stop loss somewhere around 266.5 is necessary to help us maintain a positive risk reward profile on the trade.
Looking the other way, a break below 263.05 (and a close below this level on an intraday basis) would validate 260.72 as a – once again – short-term target. On this one, a stop loss somewhere around 264 flat will give us about a 2 to 1 risk reward profile, and keep things attractive from a risk management perspective.
Charts courtesy of Trading View