Today’s action in the bitcoin price has – once again – brought with it some surprising momentum. We started off the day down and expected to get some sort of correction. In light of this expectation, we teed up our key levels and put our breakout strategy to work. Action has now matured throughout the day, and as we head into a fresh Asian session this evening, what are we looking at, and where will we look to get in and out of the markets if the volatility continues? Further, what did today’s action bring us as far as getting into a live trade was concerned? Take a quick look at the chart.
As you can see, action in the bitcoin price today broke out of our predefined range and put us long towards an initial upside target of 400 flat (if you remember, we outlined a staggered entry with an initial target of 400 and longer term target of 417.42. We’ve got a stop loss at 376, so we will not be entering any fresh trades while this one is open.
If you are not yet in a trade, however, there is still plenty to watch if you are looking to et in and out during Asia.
In term support for the session sits at our previously broken resistance at 379.30, while fresh in term resistance sits at our initial target of 400 flat.
If we can break above resistance at 400, it will put is in a long entry towards our longer term target of 417.42. A stop loss is required on this one – somewhere around 396 should do the trick.
Looking to the downside, if we break back below in term support it would present a short opportunity towards 353.12, with a stop loss somewhere around 384 keeping things attractive from a risk management perspective.
Charts courtesy of Trading View