Last night we published our twice daily bitcoin price watch piece a little later than normal in an attempt to hold out for some volatility. We tightened our key levels based on the action we had seen over the last few days, and brought out both our scalp and intrarange strategies. Action has now matured throughout the night, and as we head into a fresh day’s trading, how are going to approach the bitcoin price today, and what are we looking for during today’s European session? Take a quick look at the chart below to get an idea of what we’re watching.
As the chart shows, we have brought today’s range in even tighter than we have over the last few days. In term support sits at 333.24, while in term resistance comes in at 337.88. These are our levels to the downside and upside respectively.
We will bring our breakout strategy into play today. If we can break above in term resistance at 337.88 it will put us in a medium term long position towards an initial upside target of 340 flat. This is quite a tight target, so we need a pretty tight stop in order to maintain a positive risk reward profile. Somewhere around 336.5 should work.
Looking the other way, a break and a close below in term support would be an excuse to enter short towards a downside target of 330 flat. Again, this is a pretty tight downside scalp trade, so a stop in the region of 334 flat will help us to keep things attractive from a risk management perspective.
Today’s range is a little tight to allow us to bring our intrarange into play – so we will just stick with the breakout and see where it takes us.
Charts courtesy of Trading View