So for today’s Asian session bitcoin price watch, we are going to tighten things up a little. A look at the daily chart in the bitcoin price reveals a few straight weeks of overarching bullish momentum, and while we would love this momentum to continue from a long term capital gains on our holdings perspective, its made us a little wary. We are approaching $300 flat, having broken to the downside through $200 last month, and if there was ever a time for a medium term correction, now is it. This doesn’t mean the overarching trend is likely to change – simply that we will probably get some profit taking near term and – in turn – some consolidation. So, with this noted, here’s a look at the levels we are watching in the bitcoin price this evening, and a quick note about our risk management parameters as they relate to our entries. Take a quick look at the chart to get an idea of the levels we are keeping an eye on.
As the chart shows, to the downside we are looking at 285.16, and to the upside we are watching 288.77. These levels bring us in term support and resistance respectively. As mentioned, this is a pretty tight range to play with, so only our breakout strategy is relevant here (our intra range would not leave us enough room to bring risk management parameters into play).
If we get a break above in term resistance at 288.77, it would put us in a long entry towards 282 flat. A stop just the other side of our entry, somewhere around current levels at 287 flat, will ensure we are taken out of the trade for a small loss in the event of a reversal.
Looking the other way, a break below in term support would put us in a short term scalp towards 283.04, with a stop around 286 keeping things attractive from a risk management perspective.
Charts courtesy of Trading View