A little earlier this morning we published our twice-daily bitcoin price watch piece highlighting the levels we were keeping an eye on throughout today session. Action has now matured throughout the day, and – while we are trading at pretty much the same levels as we were when we published this morning’s piece, we have seen a certain amount of volatility and some action that suggests we could get a break out a little later on this evening. With this said, what are the levels we are now keeping an eye on, and where will be looking to trade to and from the bitcoin price tonight? Take a quick look at the chart.
As you can see, in term support at 234.99 and in term resistance at 237.96 still hold as the levels that we will be watching as we head into Wednesday evening. We got some bullish volatility around the early afternoon (GMT) and this has brought us to trade at 237.10 – less than one dollar short of our upside entry signal level.
If we get a break above 237.96, and a close above this level on an intraday basis, it would put us long towards 240 flat. Once again, mirroring the levels we outlined this morning, a stop loss somewhere around 236 would keep risk tight enough to make the trade worthwhile from a risk management perspective.
Looking the other way, if the bullish momentum we have seen reverts, and we see some downside strength, a break below 234.99 would put us short towards 230 flat. This is quite an ambitious target given current action, and it affords us the opportunity to place a wider stop – somewhere mid-range around 236.40.
Sometimes when action is like this we will enter long at support and short at resistance to take advantage of intra-range action, but with today’s range being so tight, the likelihood of us being chopped out is too high for this sort of strategy.
Charts courtesy of Trading View