The hot topic across global financial markets at the moment is Greece. Flick to any business or economics related channel on the television, or browse to news media websites in the aforementioned categories online, and you will be hard pushed to find anything on the front page that doesn’t relate to the potential impact a Greek exit from the Eurozone might have on a) global economies and b) global commodities. For a while we have looked to Greece as a potential barometer of just how much bitcoin at its current level of acceptance is influenced by global fundamental events, and – at the beginning of this week, succeeding the Greek referendum – it looks as though global markets perceive bitcoin as they do gold; in other words, as a safe haven asset. We gleaned this from that it was reasonable to attribute the increase in the bitcoin price seen throughout Sunday evening and during Monday’s European session to the situation in Greece. However, throughout today’s session, we have seen a decline in the bitcoin price from its $278 highs hit yesterday. So, with this said, what are the levels we are watching now in the bitcoin price, and how can we get in and out according to our intraday breakout strategy in order to play on any potential further volatility inspired by what’s going on in Greece? Take a quick look at the chart.
As you see, during today’s session, we have pretty much bounced along what remains as in term support at 264.94. In term resistance currently sits at 269.31, and it is this range that will define tonight’s action. If we can get a break above 269.31, it would bring 274 into play as an upside target medium-term. A stop loss on this trade somewhere around 268 will maintain a positive risk reward profile on the trade. Conversely, if we get a break below 264.94, it would validate a short entry towards 260 flat.
Charts courtesy of Trading View