In yesterday afternoon’s bitcoin price watch analysis piece, we showed a few of the key levels that we would be keeping an eye on throughout Tuesday evening. We got quite a lot of volatility throughout the day on Tuesday, and we are hoping that this volatility would continue as we traded into a fresh Asian session overnight. As it happens, we didn’t see quite as much action in the bitcoin price between then and now, but things look to be set up so as to deliver some volatility this morning in Europe. With this said, what are the levels we are keeping an eye on today, and how would be looking to enter according to our scalp strategy? Take a quick look at the chart.
As you see, having reached highs yesterday at 230.79 shortly after 9 AM GMT, we bounced around this level for a few hours and – having broken through 229 flat yesterday evening, have pretty much traded sideways with a slight downside bias overnight. We are now trading mid-range between what serves as in term support at 226.67 and resistance at 230.79. These are the levels we are going to keep an eye on during today’s session.
If the downside momentum continues, and we get a break below 226.67 on the intraday basis, it will put us short towards an initial downside target of 223.99. A stop loss somewhere around current levels (228) will keep our risk reward profile positive and take us out of the trade in the event of a bias reversal. Looking the other way, if we get some upside action and we can break above in term resistance at 230.79, we will look to enter long on this break (and close above this level) towards an immediate upside target of 234 flat. Once again, a stop loss somewhere around 229 will maintain a positive risk reward profile.
Charts courtesy of Trading View