In yesterday evening’s twice-daily bitcoin price watch piece, we suggested that we were looking for some volatility during the Asian session through which we could get in and out of the markets according to our breakout strategy. We also suggested that – if action did not present us with this volatility – we could incorporate our intra-range strategy to attempt to draw profit on a flat trade. Action has now matured throughout the evening, and – as we head into a fresh European session – what are the levels that were keeping an eye on the bitcoin price today, and what can we expect from bitcoin price as we head into the weekend? Take a quick look at the chart.
As you see, we did get some volatility, and – against our best wishes – the volatility came to the downside. We broke through in term support pretty late on during the evening, and we now trade somewhere around 283.7, in between in term support at 281.8 and resistance at 284.53. These are the two levels that we will be watching as we head into today’s session.
We will look at our breakout strategy today, so we will first look for a break above 284.53 to validate a medium-term upside bias towards 288.99 as an initial target. On this trade, a stop loss somewhere around 283 flat will help us maintain a positive risk reward profile while keeping enough room on the trade to avoid us being chopped out in the event that we return to trade mid-range.
Looking the other way, a break below 281.80 (in term support) will put us short towards a short-term target of 278 flat. Once again, a stop loss is warranted, so somewhere around 283 looks attractive from a risk management perspective.
Charts courtesy of Trading View