Having declined steeply over the weekend, we reported in yesterday’s bitcoin price watch piece that the BTCUSD initially kicked off the day trading gently to the upside within a predefined range, before kicking off a further decline and taking out our downside target. We later reported that we were looking at a fresh range throughout the evening on Tuesday, and that we would enter a short-term scalp trade if we don’t break out of this range. Now as we enter a fresh European session, is this range still pertinent, and what things will be looking for in the event of a fresh break today? Take a quick look at the chart.
As you can see from the chart, the range that we outlined last night has pretty much held throughout the evening. In term support today sits at 230.99, while in term resistance sits a 233.16. These are the levels we will be keeping an eye on today.
We are currently trading just shy of resistance, so we will look for a break above 233.16 and a close on an intraday level to validate an initial upside scalp trade target of 234.32. As a secondary target to the upside, and if we get a break above our initial goal, we will look to 236 flat. A stop loss somewhere around 232.5 will maintain a positive risk reward profile for both the initial and the secondary target.
Looking the other way, and if current resistance holds firm, we will enter a short trade towards in term support from resistance at 233.16. A stop loss somewhere around 234.00 and a target of 230.99 presents us with a favorable reward profile, while ensuring we are taken out of the trade in the event of a bias reversal and a spike to the upside.
Charts courtesy of Trading View