In yesterday evening’s bitcoin price watch piece, we looked at the action we had seen during the European session, and suggested that – if we could get a breakout to the upside – it may be the potential driver behind a medium to long-term revaluation in the bitcoin market. Bitcoin has declined quite considerably over the last few months, and – having bottomed out around $200 last month – looked to be due some upside momentum. The fundamentals remain strong, and as bitcoin infrastructure is built, it’s price – while volatile – should not depreciate to considerably. Overnight last night, we saw a vindication of this bias, with the breakout we were looking for. We now trade just ahead of $245 flat, and have a couple of fresh parameters that we are keeping an eye on during today’s session. So, without further ado, let’s take a look at what these levels are, and see where we can try and get in and out of the market according to our intraday strategies during today’s European session. First things first, take a quick look at the chart.
As you see, we broke through in term resistance at 244.17 to reach intraday highs about half an hour ago at 246 flat. We’ve since corrected about one dollar, but in term support now lies at 244.17, and resistance at 247 flat. These are the two levels we’re going to watch today – admittedly a tight range, but one that should give us an entry on any volatility.
If we get a break above in term resistance at 247 we will go long on a close above this level towards a short-term target of 250 flat. On this trade, a stop loss somewhere around 246 flat should help us to maintain a positive risk reward profile.
Looking the other way, if we break back below in term support at 244.17, it might indicate a short-term reversal, and we could enter on an aggressive intra-range trade towards 239.85 in term support.
Charts courtesy of Trading View
