A little earlier on this morning we published our twice-daily bitcoin price watch piece. In the piece we highlighted the levels that we were watching in the bitcoin price during today’s session, and suggested how we might respond to price reaching these levels during European market open. Now action has matured throughout the day and we are looking at a fresh set of levels carved out by some volatility from today’s markets. With this said what are the levels that we are keeping on now, and how can we get in and draw profit from the market on action during the Asian market session? Take a quick look at the bitcoin price chart below.
As you can see, we broke through the level that we had slated as in term resistance – 244.59 – a little after midday GMT. Post break, we ran up to just shy of intraday highs at 246.92, before correcting to trade back within the range briefly. From this level, (effectively a retest of support) we bounced back up to 246.90 and currently trade just shy of this level. Those aforementioned of levels to watch – 244.59 as in term support and 246.92 as in term resistance.
If we get a bounce back down, we will look to trade an intra-range scalp towards 244.59, with a stop loss around 247.5 helping us to maintain a positive risk reward profile. If we can break above 246.92, it would immediately validate 250 flat as an initial upside target. A stop loss somewhere around 246 flat on this trade makes it attractive from a risk management perspective. Looking the other way, a break below 244.59 and a close below this level on an intraday candlestick chart would bring overnight lows at 241.06 into play as a medium-term downside goal.
Charts courtesy of Trading View