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In this morning’s bitcoin price watch piece, we focused on the volatility we had seen throughout the Asian session last night. We noted that we would trade the range formed in the bitcoin price initially, but do so in anticipation of a larger, more pronounced move a little later on this evening. Action has now matured throughout the day, and as we head into the close of the European session, what are we looking to trade, and where will we define our risk in the event that we get our anticipated volatility? Take a quick look at the chart.
As the chart above illustrates, the levels we are looking at this evening remain the ones we slated this morning as being the ones to watch – at least from a range bound perspective. In term support sits at 250.25, while resistance holds (after being tested recently) at 256.44. With this said, our wider term targets (and the ones we will look to trade towards in the event that we get a breakout of our range) are our downside target at 242.84 and our upside target at 260 flat.
We are currently trading mid range, so let’s address the upside first. A close above in term resistance wuld put us long towards the aforementioned 260 flat, with a stop loss around 254 serving as outr risk definer and ensuring we are taken out for just a small loss if price turns around.
Conversely, a break above below in term support would set us on the lookout for a close below this level. If we get the close, we will enter short towards a medium term downside target of 242.84. There are about $8 worth of reward on offer here, so a stop somewhere around current levels (circa 253) will do nicely from a risk management standpoint.
Charts courtesy of Trading View
