Earlier this morning we published our twice-daily bitcoin price watch piece. In the piece, we highlighted the levels that we would be keeping an eye on in the bitcoin price during the European session, and suggested how we would respond to price reaching or breaking these levels as far as entering according to our intraday scalp strategy was concerned. Now action has matured throughout the day, what are the levels that we are watching as we head into the Asian session this evening, and how can we draw profit from the markets according to our strategy? Take a quick look at the Bitcoin Price chart below.
As you see from the chart, today’s action has been relatively mute – especially when compared to the action we have seen over the last few days. Having outlined our range this morning – 242.88 to the upside serving as in term resistance and 238.20 to the downside serving as in term support – we suggested we may see some movement within this range. However, we have hovered around the aforementioned in term resistance level, hitting it once but correcting back to trade mid-range around where we now trade at 241 flat. With this said, the levels that we outlined this morning remain the ones to watch heading into this evening.
We will initially look for a break above 242.88 to validate an upside all this entry towards 247.25. On this trade, a stop loss somewhere around current levels (240.50) will help us to maintain a positive risk reward profile.
Looking the other way, if we get a run down towards 238.20 (in term support) a break below this level would put us short towards 235 flat. We’ve not got quite as far to run on this trade as far as drawing a profit is concerned, so a stop loss must be a little tighter – somewhere in the range of 239.50 to 240 flat looks reasonable.
Charts courtesy of Trading View