Earlier this morning, shortly before the markets opened in the UK, we published our twice-daily bitcoin price watch analysis piece. In the piece we highlighted a number of the key levels that we were keeping an eye on, and suggested how we might react to price reaching or breaching these levels as far as entering a position is concerned. Now action has matured throughout the day on Monday, what are we looking at in the bitcoin price on Monday evening, and how can we implement our strategy heading forward? Take a quick look at the chart.
As the chart shows, we’ve had some quite volatile action during today’s session. Shortly before we published our piece this morning, we saw a little bit of a pop up towards the broken support we got on Sunday. After a short correction period, this upside momentum continued, and we reached intraday highs at 227.99 – a level that now serves as in term resistance to the upside. To the downside, 225.43 offers us in term support. These are the two levels that we will be watching this evening.
If get a break below 225.43 (in term support) it would validate a medium-term bearish bias with a target of 222 flat initially. This is quite a wide target, saw white stop loss is valid, so somewhere around 227 flat will keep our risk reward profile positive.
Looking the other way, if we can break above in term resistance at 227.99, it will validate a short-term scalp target of 230 flat, with a stop loss at 227 flat giving us something like a 2 to 1 risk reward profile and making the trade worthwhile from a risk management perspective. As a quick side note, our intra-range strategy is unusable at the moment, with the parameters we are watching being so tight together.
Charts courtesy of Trading View