The Bitcoin price has made it very easy for us to implement our intraday breakout strategy over the last few days. Staggered improvements in value have preceded periods of consolidation, with the aforementioned periods allowing us to define our range prior to the next breakout. Whether this sort of action will hold firm going forward remains to be seen—things can reverse quickly in the Bitcoin price, as we know all too well.
As we move forward, however, we can stick to our predefined strategy and take advantage of action in either direction. So, as we head into tonight’s market, what are the levels we are looking at in the Bitcoin price this evening, and where are we looking to get in and out of the markets on any volatility? Take a quick look at the chart below.
As you can see, and taking into account today’s action, we have shifted our range to the upside. We got into a long trade on today’s breakout, which saw us trade towards our target (and take it out for a profit) earlier this afternoon. The re-defined range is now defined by in term support at $454.54 and in term resistance at $464.89.
If we get a break above in term support, we will keep an eye out for a close above this level to put us in a long entry towards an initial upside target of $470 flat. This will represent fresh highs, so we may see some friction, but it looks to be a reasonably conservative target nonetheless. A stop on this one somewhere in the region of $462 will keep things attractive from a risk management perspective.
Looking the other way, if we close below in term support, we will enter to the downside with an initial short target of $447 flat. Again a stop is necessary—somewhere in the region of $459 works great.
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