Once again we’ve had a bit of a wild day in the bitcoin price. Having consolidated overnight in response to yesterday’s collapse, the bitcoin price found intraday lows at 348.59. From this level, today’s action has seen a rise up and through the level we predefined as this morning’s resistance, 356.58, and put us in a long trade towards 365.84. In light of this, we wont be initiating any fresh positions until this one closes out – either through the hitting of our stop loss or our predefined target at 368.54. For those not yet in a trade, however, here are the levels to keep an eye on tonight.
First up, support. With price having broken though resistance today, that level now serves as in term support – specifically the aforementioned 356.58. In term resistance comes in at our current target – 365.84.
Since we are currently enjoying some upside momentum, let’s address that the upside first. If we see a break of in term resistance, and get a close above this level on the intraday chart, we will enter long towards 379.83, intraday highs from yesterday. This is quite a wide range target, so we’ve got a little bit of room to play with from a risk management perspective. In light of this, a stop loss somewhere in the region of 361 (current levels) works nicely.
Now for the downside. A break below in term support will put us short towards 348.59, with a stop loss in the 358 flat spot keeping things attractive on the risk management side of things.
As a final note, intrarange is on for those looking to pick up an aggressive entry on any consolidatory action. Long on a bounce from support and short on a corrective return from resistance, with a stop just the other side of entry defining our risk.
Charts courtesy of Trading View