Earlier this morning we published our twice-daily bitcoin price watch piece. In the piece, we discussed how bitcoin had traded sideways for the majority of the week, and we suggested that it might be worth incorporating a range bound strategy to take advantage of this sideways movement. Now action has matured throughout today’s session, and as we head into the weekend, what are the levels that we are keeping an eye on the bitcoin price, and is a range bound strategy still appropriate? Take a quick look at the chart.
As the chart shows, we have remained within the range that we had slated this morning as the area to keep an eye on in the bitcoin price today. Today’s action has seen us gradually trade upwards towards in term resistance – currently at 230.77 – but we’ve got neither a breaking nor a reaching of this level as yet. As such, our strategy remains as it was this morning.
If we can get a hit on 230.77, we will look for rejection to put us short towards in term support at 226.83 medium-term. A stop loss somewhere around 232 flat will maintain a positive risk reward profile on the trade, while giving us enough room to avoid a chop out in the event that we break just above and return to trade back within the range.
If we can get a solid break above resistance, it would put us long towards an initial upside target of 234 flat with a stop loss somewhere around 229 making the trade attractive from a risk management perspective.
Conversely, a break below 226.83 would put us short towards 223.98, with a stop loss somewhere around 228 flat defining our risk parameters on the trade. If, rather than a break, we get a bounce, we will look to enter long on an aggressive intra-range strategy trade towards aforementioned in term resistance, with a stop loss somewhere around 225.50.
Charts courtesy of Trading View