Bitcoin has been on a solid rally in recent days. Yesterday it spiked all the way up to a high of 46,800 and has since that dropped down a bit. It is currently trading around the 45,500 level. I do not want to jump in on any trade at the current level. It is currently trading in a relatively tight range, and I think we will be better off waiting for a break of the range to either side before entering a new trade.

Down and then up?

My preferred scenario I would like to see is a drop down to the 43,900 – 44,300 level and look for a possible long trade. See the image below for details. If we see a drop to this level as a spike, I am looking ladder in throughout the mentioned zone, with tight stops just below the 43,900 level. If we see a slow grind down to this level followed by consolidation, I may try to enter a long at the lower part of the range, again with stops just below the 43,900 level.

With laddered longs, I plan to close this out around the 49,000 – 49,500 level partially. I also recommend moving stop loss to break even swiftly, should we bounce from the mentioned price zone.