Earlier this morning we published our twice-daily bitcoin price watch piece, highlighting the levels we will be watching on an intraday basis to help us form a directional bias, and the way we would respond to price reaching these levels as far as position entries are concerned. Now action has matured throughout the day, and movement in the bitcoin price has presented us with a couple of fresh key levels to keep an eye on as we head into the US afternoon session. So, with this said, what are we looking at? Take a quick look at the chart.
As the chart shows, shortly after we published this morning’s piece, the bitcoin price broke through what we had slated as in term support and run down towards our initial target. However, we were chucked out of the trade by quick recovery, and the returning of price to trade within the initial range. We then saw price break down again, and this time we hit our target relatively quickly. Price has since recovered to test broken support and this level now serves as in term resistance. In term support sits at 232.99 – our downside target mentioned in the previous piece. These are the two levels to watch. If we get a break back above 234.96, we will enter with an initial upside target of 237.77, with a stop loss somewhere around 234.50.
Conversely, if the bearish momentum holds and we get a run back down to 232.99, we will be looking for a break of this level to validate the day’s lows – 231.63 – as an immediate downside target, with a tight risk profile defined by a stop loss at 233.5 ensuring that we are taken out of the trade from a small loss in the event of choppy action as we saw this morning.
Charts courtesy of Trading View