In our intraday bitcoin trading over the last few weeks, we have outlined our ranges as being pretty tight. However, over the last few days, despite a few swift moves during the Asian sessios, the bitcoin price has remained pretty restricted within a five or six dollars range. As a result, we are going to tighten things up a little bit during this evening session, and try and bring an intra-range strategy into play. With this said, take a look at the chart below, and get an idea of the key levels we are watching as we head into tonight’s Asian session.
As you see, in term support sits at 227.984 tight session, while in term resistance sits at 232.97 will stop with about five dollars range between the two parameters, we got enough to bring our intra-range strategy into the picture if action in the bitcoin price allows it. We’re currently trading just shy of resistance, so we will look for a correction from resistance to put us into a short trade towards in term support at 227.98. On this trade, a stop loss somewhere around 233.5 will keep things attractive from a risk management perspective.
Looking the other way, if we run down towards in term support, we will look for a bounce from this level to put us long towards in term resistance. Once again, a stop loss is necessary, so somewhere around 226 should do the trick.
If we manage to break out of the range, a close above 232.97 would put us long towards 235 flat, while a breakdown and a close below 227.98 would put us short towards a longer-term target of 223.08. Both these trade, a stop loss one or two dollars just the other side of our entry will ensure we are going into the trade with a positive risk reward profile.
Charts courtesy of Trading View