From the position we found ourselves in this morning, today has not been a good day for our strategy. Having outlined our bitcoin price parameters according to the key levels that we were keeping an eye on, we went into this morning’s European session expecting either to incorporate our intra-range strategy or two take advantage of a breakout and getting in according to our intraday scalp strategy. As it happens, choppiness in the markets has ended up putting us in out of the markets for a loss, and – as we head into the Asian session this evening – this choppiness looks as though it could be set to continue. With this said, however, the action has enabled us to maintain our earlier levels, and so we will go into this evening session looking at a similar strategy as we did this morning – albeit hoping for a different result. So, with this said, what were looking at this evening, and where will we look to get in and out of the markets? Take a quick look at the chart.
As you see, we broke through in term support at 227.49 a couple of occasions over the last few hours, but have quickly returned to trade back within range this afternoon. This puts 227.49 as the level to watch to the downside this evening. To the upside, 232.46 (still overnight highs) remained solid. These are the two levels that we are watching. If we break down below 227.49, it will put us short once again towards an intraday target of 224.37. A stop loss on this one somewhere around 229 will help keep things attractive from a risk management perspective. Looking the other way, if we break above 232.46, we will look to enter long towards 235 flat. With the choppy action, our intra-range strategy is not valid this evening.
Charts courtesy of Trading View
Samuel is a currency trader, author and contributor to a number of the leading forex market publications including Futures Magazine, FX Trader Magazine and Spreadbet Magazine. He is a an avid bitcoin enthusiast with a real interest in how cryptocurrencies are likely to affect global economics in the future. View all posts by Samuel Rae