It is becoming increasingly difficult to draw a profit from the market. What has been a faithful strategy for the past six months or so, our traditional breakout strategy, is failing to offer many valid entry signals on the back of the consolidatory action we have seen in the bitcoin price over the last week. We have ranged tightly mid range, not even touching our key levels. Not only has this left us unable to implement a breakout position, but it has also made it difficult to effectively bring our intrarange strategy into play – as this requires us to correct from a key level to enter, Regardless, however, we must forge on. The key to successful trading is to maintain a strategy, whether it is working or not. We never know when conditions will revert back to favorable, and when they do, we want to be ready. So, with this said, and as we head into mid session Europe this afternoon, what are the levels we are keeping an eye on in the bitcoin price, and where are we looking to get in and out of the markets according to our traditional breakout strategy now? Take a quick look at the chart to get an idea of our key levels.
As you can see, we are sticking with 331.29 as in term support to the downside, and 338.93 as in term resistance to the upside. These are going to be the two levels we watch this afternoon.
We are sticking with our standard breakout, as we have mentioned, so lets look at the upside first. If we break above in term resistance, we will look to put in a long entry towards an initial upside target of 342 flat. This is a scalp, so a tight stop is required – somewhere around 337.5 will keep things attractive from a risk perspective.
Looking the other way, a break below in term support will put us short towards 328.02, with a stop around current levels at 333.40.
Charts courtesy of Trading View