In our bitcoin price watch piece that we published early this morning, we highlighted the fact that it is a public holiday in the US, the UK and Europe, and suggested that this might have an impact on trading volume during today’s session. We also noted, however, that just because we might see some low-volume doesn’t mean we won’t see any volatility – and as it happens – this has proven incorrect. We got some sharp movements during today’s European session, and as we head into the US afternoon, what are the levels to keep an eye on, and where will be looking to enter trades? Take a quick look at the chart.
As you can see, shortly after we wrote today’s bitcoin price watch piece, price broke through in term support at 238.02 to reach floors of 233.08 – a level from which we saw the bitcoin price perform a sharp reversal and correct to returned and trade within what now serves as our range, as defined by in term support at 235 and resistance at 238.02. These are the two levels we will be watching this evening. If we get a break above 238.02, we will look to enter long with an initial upside target of 240.03, and place a stop loss somewhere around 237 flat to define our risk. A tight scalp trade, but one that offers us the potential to draw a quick profit if we get it right.
Looking the other way, a run down towards 235 flat (and a close below this level on an intraday basis) would validate 233.08 as an immediate downside target. About two dollars worth of reward leaves us one dollar worth of risk to maintain a two to one risk reward profile, so a stop loss somewhere around 236 flat will keep the trade positive.
Charts courtesy of Trading View