Earlier this morning we published our twice-daily bitcoin price watch piece. In the piece, we highlighted a number of the key levels that we would be watching in the bitcoin price, and suggested how we might respond to price reaching these levels as far as entering according to our scalp strategy was concerned. Now action has matured throughout the day, what are the levels that we are keeping an eye on in the bitcoin price this evening, and how can we draw profit from the markets if we get any volatility throughout the Asian session? Take a quick look at the chart below.
As the chart shows, action today has been relatively muted. We have simply held flat to trade within the range we highlighted this morning, and – as such – the levels we presented as the ones to watch remain the ones to keep an eye on as we head into the end of the European session.
There is enough room to employ an intro range strategy here, so if we get any rejection from resistance, or a bounce from support, we can enter short or long respectively with a stop just the other side of either level.
As far as a breakout strategy is concerned, if we can get a break above 230.79, it would validate 234 flat as a medium-term upside target. A stop loss somewhere around 229 flat in this instance will maintain a positive risk reward profile on the trade.
Conversely, a break below 226.67 would bring 223.99 into play as an initial downside target. A little tighter stop loss is necessary on this one; somewhere around 228 flat will keep our risk reward profile positive while still leaving just about enough room to withstand a spike back to trade within range in the event that we get a bias reversal medium-term.
Charts courtesy of Trading View