Earlier this morning, in our twice daily bitcoin price watch piece, we discussed the key levels that we would be watching as the European session matured. The session is now drawing to a close, and we are likely going to see plenty of volatility tonight, given the movement we saw today. Action overnight in Europe (trading day in Asia) has given us some sharp momentum over the last few weeks, primarily as a result of the trading volume we get out of China. We will soon be launching the NewsBTC Live Trading Room – and the Asian session is likely going to play a big part in our strategy in there – so as we head into tonight’s action, here’s a run down of our strategy, alongside a description of how it applies in a practical session, using the framework of today’s movements. Take a quick look at the chart.
As you can see, action today broke to the downside and penetrated our predefined in term support shortly after lunch. Having done so, however, we saw the bitcoin price reverse and return to trade within range. Our stop was hit for a small loss – but not to worry, that’s what it’s there for!
In response to the break, we have shifted our in term support to the downside slightly, now coming in at 355.15. In term resistance remains as it has been all day, at 367.86. these are the two levels that will signal entry this evening.
If we get a close above I term support, it will put us in a long position towards an initial upside target in the same region we highlighted this morning – somewhere around 380 flat – with a stop around current levels at 365.
Looking the other way, a close below 355.15 will put us short towards 350 flat. This one is a little tighter, so a slightly tighter stop is warranted. Somewhere in the region of 357 would work perfectly on a relatively tight close below support.
Charts courtesy of Trading View