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A little earlier on this morning, shortly after the European session commenced, we published our twice-daily bitcoin price focus piece. We highlighted the fact that the bitcoin price had broken through in term resistance overnight on Tuesday, and carved out fresh range – the parameters of which marked the levels we were keeping an eye on during today’s session. Now action has matured throughout the European session, and we are just about to kick off the US afternoon. This said, what has action told us about the likely intraday direction of the bitcoin price throughout today’s session, and what can we expect as we head into the evening GMT? Take a quick look at the chart.
As you can see from the chart, we did briefly breakout to the upside through in term resistance at 236.88 aboutt half an hour ago, putting us long towards 240 flat. However, almost immediately, we broke back down to within range and have been taken out for a small loss according to our pre-position stop. At time of writing, the levels we highlighted this morning – in term support at 232.71 and resistance at 236.88 – remain the levels to keep an eye on.
We will look for another break of 236.88 to signal a second upside entry, with our target remaining at 240.00 and a stop loss somewhere around current levels (235.9). We may be chopped out of the trade again, but this is why we place tight stop losses – so that, in the event of a stop out, we are not facing irretrievable losses.
Looking the other way, if we can get a break towards 232.71, we will look for a close below this level to signal a short entry with an initial downside target of 230 flat. In this scenario, a tight stop loss somewhere around 233.5 will ensure we are taken out of the trade in the event of a bias reversal.
Charts courtesy of Trading View
