Late yesterday afternoon, shortly before the markets closed in the US, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted the classical chatting pattern we noted a day earlier, and suggested that we may see some volatility throughout the week and as price matured across the Asian session. Now action has matured overnight, what are the levels that were keeping an eye on in the bitcoin price today, and how can we draw profit from any potential volatility in the bitcoin price going forward? Take a quick look at the chart.
As the chart shows, action overnight has continued to display bearish characteristics as we have seen throughout the majority of this week. Aside from a small Bull run a little earlier on today, we traded down towards in term support at 238.20 before correcting and once again returning to the overarching bearish momentum to define our range as the aforementioned in term support and 242.88 to the upside serving as in term resistance. These are the two levels that will be keeping an eye on during today’s European session.
Looking to the upside first, if we can get a break above 242.88, it would validate an initial upside target of 247.25, with a stop loss somewhere around 241 (mid-range) maintaining a positive risk reward profile on the trade in ensuring we are taken out of the trade in the event of a bias reversal.
Looking the other way, if we can get a run down towards in term support at 238.20, or watch action closely for a break below this level on our intraday chart. If this break occurs, and we close below this level on the 15 minute candlestick chart, it will validate a downside target of 235 flat, with a stop loss somewhere around 240 maintaining a tight but positive risk reward profile on the trade.
Charts courtesy of Trading View