Shortly before the markets close yesterday evening, we published our twice-daily bitcoin price watch piece. In the piece we highlighted the levels we would be keeping an eye on in the bitcoin price throughout the Asian session on Wednesday evening, and suggested how we would respond to price reaching or breaking these levels as far as getting in and out according to our scalp and intraday strategy was concerned. Now action has matured overnight, what are the levels that we are keeping an eye on the bitcoin price today, and how do we expect to get in and out of markets to draw profit on today’s action? Take a quick look at the chart.
As you can see from the chart, action overnight initially gained to reach intraday highs around 260.79, but from this level, we have seen a sharp decline towards – but not yet reaching – what serves as in term support at 254 flat. These two levels will be the ones that we are watching as we head into today’s session.
If the bearish momentum continues, and we see a further run down past 254.00, we will look for a close below this level to validate a medium-term bearish bias and present us with an initial downside target of 250 flat. A stop loss somewhere around 256 will maintain a 2 to 1 risk reward profile and make the trade attractive from a risk management perspective.
Looking the other way, if we get a bounce from current levels and a run up towards 260.79, we could initially look for a long trade from support towards resistance and take a intro range profit, with a stop loss just below 254 taking us out of the trade in the event that we do get a break, or can wait for a break above 260.79 to validate a bullish bias and a longer-term upside target of 268 flat.
Charts courtesy of Trading View