A little earlier this morning we outlined our strategy for today’s action in the bitcoin price. We defined our range and suggested that, if we got a continuation of the volatility we saw throughout the majority of last week, we would look to enter in the direction of the volatility on a breakout from our range. Action has now matured throughout the day – and as we head into a fresh Asian session – let’s take a look at some of the levels we are looking at going into tonight. First, have a quick look at the chart.
As the chart shows, action has literally just (at time of writing) broken through in term resistance to the upside. We are still on the breakout candlestick, so we haven’t entered yet – but if we can get a close above the level in question it will give us an opportunity to enter long towards our intraday target of 271.17. On this trade, a stop loss somewhere around 262 flat will ensure we are taken out of the trade for only a small loss if the move proves to be temporary and we return to trade within the range.
If we do return to trade within our range before we get a chance to enter long (i.e. if the candlestick doesn’t close above in term resistance near term) we will look at 260 flat as in term support to the downside – entering on a break of that level short towards a medium term target of 255 flat – just as we would have done today if we’d have got the opposite action. Again a stop loss is necessary, and again somewhere around 262 flat would work nicely.
Charts courtesy of Trading View