Bitcoin Price Tanks; Further Downside to Come?

Earlier this morning we published our twice-daily bitcoin price watch analysis piece. In these pieces, we often highlight the levels that we are keeping an eye on in the bitcoin price, and – as we move through the European session – these levels don’t often change too much. However, during today’s session, we have seen quite a lot of volatility with some considerable movement to the downside. With this in mind, the levels that we were watching this morning are no longer particularly relevant, and we are watching a complete fresh set of levels this evening, as we head into the Asian session and beyond. So, with this said, what are we looking at this evening, and how can we get into the markets and draw profit from our intra-range and breakout and scalp strategies? Take a quick look at the chart below.

As the chart shows, today’s action has brought us down to trade towards daily lows at 239.99, and this level now serves as in term support as we head into the Asian session. Looking to the upside, 243.98 – broken support from earlier – presents us with in term resistance going forward.

We will look for a break back below 233.99 to present us with an initial bearish bias, with a short-term downside target of 235 flat. On this trade, a stop loss somewhere around 241 flat will maintain a positive risk reward profile and make the trade worthwhile from a risk management perspective. Looking the other way, if we get some bullish momentum in contrast to the current day’s action, we will look for a break above 243.98 to validate an initial upside target of 247.98 to the upside. Once again, on this trade, a stop loss somewhere around 242 will help us stay on the right side of our risk management parameters.

Charts courtesy of Trading View