Yesterday afternoon, we published our twice-daily bitcoin price watch piece, highlighting the levels that we had been watching during today’s session, and suggesting a couple of key levels that we will be keeping an eye on as we entered into Thursday evening and beyond. Now action has matured overnight, and Though we have not seen considerable movement in the bitcoin price, our key levels have changed from those we were watching last night. With this said, what are we watching now, and how can we play price action as we head into the European Friday morning session? Take a quick look at the chart.
At the chart shows, having declined considerably during Wednesday’s session, the bitcoin price has remained within a relatively tight range between in term support at 235.07 and resistance at 239.68. A brief break out to the downside aside, with not seen any movement outside these levels over the last 24 hours or so, and so they will be the ones that we are watching as we head into today’s session.
If we can get a run up towards 239.68, we will look for a break above this level to validate a bullish intraday bias with an initial upside target of 244.11. In this trade, a stop somewhere around 238 flat will maintain a positive risk reward profile and take as out of the position for a small loss in the event of a bias reversal.
Looking the other way, a run towards 235.07 – and a close below this level – would present us with a bearish bias, and we would enter short towards 232.23 as a short-term downside target. Once again, a stop somewhere around 236.50 will ensure we are not on the wrong side of a reversal and do not take into irretrievable loss.
Charts courtesy of Trading View