A little earlier on this morning, we published our bitcoin price watch piece. The article highlighted the current range action we were seeing in the bitcoin price, and suggested a couple of key levels that we would be watching to help us form a bias throughout the day. Now action has matured during the European session, and we are heading towards the start of the US afternoon open. This said, what has action today told us about what we can expect going forward, and what are the levels we’re watching as potential entry signals? Take a quick look at the chart.
At the chart shows, as per this morning’s thesis, action has once again spent an entire European session ranging tightly between what serves as in term support at 217.32 and 222.36 resistance. We got a run down towards support shortly after we published our technical analysis piece, but missed our range trade long entry by a couple of cents, and saw a similar thing happen a few hours later just shy of resistance. Action now sees price once again returning towards range support at 217.32.
In terms of tradable signals, things really haven’t changed too much from this morning. We will look for a bounce from in term support to validate a short-term long entry towards in term resistance at 222.36, with a stop just shy of 216 flat. Conversely, we will look for a failed test of 222.36 to signal a short entry towards 217.32, with a stop around 224 flat. If we get a break of either of the key levels we watching, we will enter in that direction, with a downside target at 210.03 and a corresponding upside target at 231.66. A stop loss at 219 flat and 221 flat respectively would ensure we are taken out of the trade in the event of a bias reversal.
Charts courtesy of Trading View