So yet again we got some buying power during yesterday’s European session and, just as has happened over the past few weeks, we have seen fresh upside highs carved out in the bitcoin price. At the start of today’s European session, however we have seen a short term correction – with a spike down negating much of yesterday’s gains. How far this correction will hold remains to be seen, but it was to be expected. Once any financial asset becomes overstretched, its not unusual for us to see some level of consolidation and – in turn – a short term sell off. So, with this said, and as we head into a fresh Europpean session’s worth of action, where are we looking in the bitcoin price today, and how can we draw a profit from any volatility? Take a quick look at the chart to get an idea of the key levels we are watching.
As you can see, the levels we are keeping an eye on today are in term support at 364.38 and resistance at 386.91. We are going to be integrating our traditional breakout strategy into today’s action, so here’s what we’ll look for:
Initially, we will look for a return to the overarching bullish momentum. If we get this return, we will see a break above (and a close above) in term resistance at 386.91 to put us in a medium term upside entry towards 395 flat. A stop loss will define our risk – somewhere around 383 would do nicely.
Looking the other way, if the correction holds further, we will look at a break below in term support as a bearish entry signal, and a close below this level would put us short towards 356 initially and, further down the line, 345 flat. Again a stop loss is necessary – somewhere around 368 will work nicely on this one.
Charts courtesy of Trading View