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Earlier this morning we published our twice-daily bitcoin price watch piece to highlight the levels that we were watching in the bitcoin price throughout Tuesday’s European session. The session has now come to a close, and we have seen quite a lot of volatility as action has matured throughout the day. With this said, do we expect this volatility to continue through to this evening, and how will we be looking to get into the markets if it does? Take a quick look at the chart.
As you see, having bounced from floors of 234 earlier this morning, the bitcoin price gained strength to break what we had previously slated as in term resistance at 237.10 shortly before midday GMT. According to our intraday scalping strategy this put us long, but we were quickly taken out for a small loss as price reversed and we returned to trade mid-range throughout the afternoon. The levels that we are watching this evening are the same as we had down this morning – in term support at 234.00 and resistance at 237.10.
If we can get a break back above 237.10, it would put us long once again with an initial upside target of 240 flat. A stop loss around 236 flat will take us out of the trade in the event that we get a bias reversal (as we did earlier today) and return to trade within the range overnight.
Looking the other way, we will be looking for a run down towards 234 and a break below this level on an intraday basis to put us short towards 230 flat. This gives us about four dollars worth of reward, so we have got a little bit more room than we did to the upside, and so a stop loss somewhere around 235.7 is valid from a risk management perspective.
Charts courtesy of Trading View
