Late yesterday evening we published our twice daily bitcoin price watch piece. In the article, we suggested that – as a result of the bullish momentum we had seen in the bitcoin price throughout the European session on Tuesday – we would be looking for a continuation of that momentum and a carry through of our breakout strategy to the upside. Action has now matured overnight and – as it turns out – we did not get any such carry through. Instead, we saw the bitcoin price reverse and correct from intraday highs to just shy of where we opened today’s European session around 245 flat. So – with this said – what are the levels we are watching in today’s bitcoin price, and where can we look to get in and out of the markets accordingly? Take a quick look at the chart.
As you can see, the levels we are watching during today’s session are aforementioned Tuesday highs at 248.15 and today’s lows at 243.70. These two levels server as in term support and resistance respectively.
If we get a break below in term support, and a close below that level on the intraday chart, we will look to enter short towards a medium term downside target of 240 flat. With about four dollars’ worth of reward on offer, we can set up our risk with a predefined stop around 245.
Looking the other way – a break above in term resistance will reignite our longer term bullish bias, putting us in a long entry towards 252. On this one, a stop around 246 will offer up a two to one risk reward profile and ensure we are taken out of the trade for nothing more than a small loss in the event of a bias reversal.
Charts courtesy of Trading View