Finally it looks as though we are getting a return to the volatility we are used to in the bitcoin price. Over the last twenty four hours, action looks to have returned to the up-down momentum we have seen over the last month or so (with the exception of the last few days) and as a result, we are able to effectively bring our breakout strategy in to play.
As we head into the European afternoon, where are we looking in the bitcoin price now, and how can we take advantage of the return to volatility in our quest to draw a profit from the bitcoin market this afternoon? Take a quick look at the chart to get an idea of the levels we are looking at.
As the chart shows, after carving out fresh lows overnight, we are now trading mid range between in term support at 314.61 and in term resistance at 325.87. these are the two levels we are looking at, to the upside and the downside respectively.
If we get a break above in term resistance, we will look for a close above that level to validate a medium term upside entry towards an initial upside target of 336.03. On this one, a stop somewhere around 324 will help us to maintain a positive risk reward profile.
Looking the other way, a close below in term support (post breakout) will put us short towards an initial downside target of 310 flat. This is a tighter target than our upside entry, so a slightly tighter stop is warranted – somewhere around 216 flat should do the trick.
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