A little earlier on this morning we published our twice-daily bitcoin price watch piece. In the piece, we highlighted the levels that we will be watching throughout Monday’s European session, and suggested that we would keep a close eye on what was happening in Greece as far as helping us to form our intraday bias was concerned. Further, we outlined how we would employ our breakout strategy to draw profit from any potential volatility we saw as a result of any news out of Greece, and slated some potential risk management parameters in the event that we get in and out of a trade. So, with all this said, what of levels that were keeping an eye on now, and can we use action during the Asian session to implement our strategy this evening? Take a quick look at the chart.
As the chart shows, the bullish action we saw throughout Sunday evening and early Monday morning continued during the European session, and we quickly broke above the level we had slated as in term resistance shortly before midday today. Having reached this level, we ran towards intraday highs of 278.58, and this level now serves as in term resistance going into the Asian session. In term support sits at 273.92. These are the two levels that will be watching this evening.
If we get a break above 278.58, would put us long towards a medium-term goal of 284 flat. A stop loss on this trade somewhere around 277 flat will help us to keep our risk reward positive and make the trade worthwhile. Looking the other way, if we can get a break below in term support at 273.92, it would invalidate the current bullish momentum and present us with a bearish bias towards an initial downside target of 267.12. With the current action, this is the less likely of the two biases, but worth mentioning nonetheless as – as we have seen – the bitcoin price can reverse quickly on any fundamental volatility.
Charts courtesy of Trading View