Bitcoin Price Declines Sharply; An Opportunity for the Bulls?

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We have had a few days off our bitcoin price watch twice daily articles, and during the time off, we’ve seen some considerable movement across the bitcoin price. With volatility driving markets, and range action only lasting for short periods of time, we have seen plenty of breakouts and our strategy has allowed us to draw quick scalp profits on a number of occasions. Now as we head into Friday, and the weekend beyond, what are the levels we are watching in the bitcoin price this evening, and how might we respond to price reaching these levels as we head into the end of the week? Take a quick look at the chart.

As the chart shows, having reached highs around 244 flat yesterday, we declined sharply overnight to reach floors of 235.09. From these levels, however, we have gained a little bit of strength today, and we are now trading around 237.5 – just shy of the day’s highs at 239 flat.

The levels to keep an eye on in the bitcoin price now are in term support at 236.24 and in term resistance at the aforementioned daily highs around 239 flat. If we can get a run up towards 239, a break above this level would suggest we may close yesterday’s decline and get some bullish momentum with an initial upside target of 244.08 being a realistic goal.

A break down towards in term support, however, could invalidate any bullish bias, and a close below 236.242 as an immediate downside target of 235.09. Admittedly, this is a tight trade, but with a stop somewhere around 237 flat we will maintain a positive risk reward profile and stay on top of our losses in the event that we get a bias reversal.

While normally we would trade a range on the day’s action, price looks a little tight today to do that so we will only be watching for breakouts this evening.

Charts courtesy of Trading View