In this morning’s bitcoin price watch article, we highlighted the range we were focusing on for the early European session. It was a pretty tight range, so we said we’d be looking at trading breakout only, as opposed to breakout and intrarange. This is because its difficult apply effective risk management parameters on intrarange trades when support and resistance are so narrow. As it turned out, we might have been better off giving it ago. Shortly before the European afternoon kicked off, price bounced from support and quickly ran up to resistance for what would have been a sharp turnaround profit if we’d have gotten in on the position. Luckily for us, however, we also got an opportunity to enter long on a trade that fell right in line with our breakout rules – a bullish entry on a break of our predefined resistance at 423 flat.
We’ve got a target set up on this one at 426, and a stop at 421, so the trade is very much still in play. We wont be looking to enter a second trade while this one remains live, but if it completes, here’s what we are focusing on this evening. The chart below highlights the altered range for the US afternoon and the Asian session overnight in Europe.
As the chart shows, we’re going to hold in term support at 420.5, and shift resistance up slightly to accommodate the most recent swing high, at 425 flat.
Intrarange is on, so long on a bounce from support and short on a correction from resistance. Stop just the other side of the entry.
From a breakout perspective, long on a close above resistance towards an upside target of 430 flat, with a stop at 423.
Short on a close below support towards 415, with a stop at 422.5 to define the risk as a two to one risk reward profile.
Charts courtesy of Trading View