On Friday, shortly before the markets closed in Europe, we published our twice-daily bitcoin price watch piece. In the article we highlighted the levels that we were keeping an eye on, and suggested where we would be looking to get in and out of the markets to take advantage of movements in the bitcoin price according to our intraday strategy. As we head into a new week’s worth of trading what are the levels we are keeping an eye on, and where will we look draw profit today? Take a quick look at the chart.
As the chart shows, action over the weekend has resulted in a sharp decline in the bitcoin price, with floors of today’s daily lows at 220.11. To the downside, this will be the level of watch today. To the upside, we will keep an eye on 229.05 – with both of these levels serving as in term support and resistance respectively.
If we get a break below 220.11 it will put us short towards 215 flat. We’ve not seen levels that low in the bitcoin price for a good few months now, so expect sustained lows if we do get a break. On this trade, a stop loss somewhere around current levels (222 flat) will help us to maintain a positive risk reward profile.
Looking the other way, a break above 229.05 would put us long towards 233.99. With about four dollars worth of reward on this one, a stop loss somewhere around 227 flat keep things attractive from a risk management perspective.
Charts courtesy of Trading View
