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In our discussions on the bitcoin price, and our trading of it, on Tuesday, we noted that the action we had seen across the last couple of days was pretty flat. In response, we said we would trade a very tight range in the hope of getting in on a breakout entry, and that we would go for some equally tight scalp targets on the positions we took.
Action yesterday afternoon put us long on a break of resistance at 422, and we targeted an upside of four dollars towards 426. We didn’t get the sustained run we had hoped for during the afternoon, and we remained long as we published the second of our twice daily bitcoin price watch pieces yesterday evening.
While we remained long, we highlighted a slightly widened rage for traders not yet in a position, and shifted resistance up to 423 flat. Action overnight has been pretty nonexistent, and in light of this, predefined resistance comes into play once again, with support remaining at 420 flat for Wednesday morning’s European session.
So, with this said, here’s a look at how we intend to tackle the markets for today.
Our position remains long towards 426, but we can enter a fresh trade according to the new day element of our strategy, meaning we will have two concurrent trades if price puts us into a position on any volatility today.
As mentioned, we are looking at a tight three-dollar range between 420 flat and 423 flat. A break of the former to the downside will signal a short entry towards 416 flat, and a stop on the trade around 422 will define risk nicely.
A break and close above the latter will signal a second long entry, towards a slightly extended target on our currently held position of 427 flat. A stop on the one at 421.5 works well.
Charts courtesy of Trading View
