For the last few weeks or so, we have been watching the bitcoin price to try and get in and out of the markets according to our intraday breakout strategy. For a variety of reasons, action in the bitcoin price has been relatively muted, and this has made it very difficult for us to execute our strategy effectively. Without sharp and considerable movements in either direction, we were regularly chopped out of our entries. Luckily, we used quite a tight stop loss on the majority of our trafes, and so the losses we took on these losers was not enough to render our account untradeable. However, with this said, over the weekend we got quite a lot of action. We initially gained to trade just shy of 295 flat, a level not seen in at least the last few weeks, and – since then – have broken back down to trade made 280s. So, what are the levels that we are watching during tonight’s Asian session, and do we think we can get in and out of the market and draw profit from the volatility we are enjoying at the moment? Take a quick look at the chart.
As you can see, having declined to an intraday floor of 286.43 (this level now serves as in term support) we traded pretty flat today towards what brings us in term resistance at 290. These are the two levels that we will be watching during today’s session.
We will look for a break above 290 to validate a medium-term upside target of 294.34. On this trade, a stop loss somewhere around 288.5 will keep things attractive from a risk management perspective.
Looking the other way, a break below 286.43 would validate a medium-term bearish bias, with an initial downside target of 282 flat. A stop loss on this trade somewhere around 287.5 will maintain a positive risk reward profile on the trade.
Charts courtesy of Trading View