A little earlier on this morning we published our twice-daily bitcoin price analysis piece, and highlighted a number of the key levels we would be keeping an eye on in the BTCUSD as price action matured throughout the European session on Monday. The session is now drawing to a close, and we are entering the US afternoon, so what are we keeping an eye on, and what are the levels we are using to form an intraday bias this evening? Take a quick look at the chart.
As you see from the chart, the levels we highlighted this morning are very much still in action, with in term support at 223.60 and resistance at 225.48 remaining as the levels to keep an eye on. At time of writing, we are trading just shy of in term support, with the bitcoin price having broken through this level around 10 minutes ago. This break initiated a downside entry towards a medium-term target of 224.04 according to our intraday strategy, and so as we head into the UK evening we will be looking to the downside – at least short to medium term. Having said this, we have seen a bullish pin form – albeit short-term – and there is a chance that this could suggest a reversal. If we do remain within range, and we do get a bounce from current levels, we will enter an aggressive long trade with an initial upside target of 225.48. A close above this level would validate 226.81 medium-term. However, if we do get a run down towards 222.04, we will look for a break this level to validate 219 flat to the downside.
On a long entry, we will have a stop loss around 223 flat from current levels, and around 225 flat on a break of in term resistance towards the aforementioned 226.81.
Charts courtesy of Trading View