Yesterday afternoon, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted the levels that we would be looking at around evening during the Asian session, and suggested that – as a result of the widening of our regular parameters – we could probably get in and out of the markets according to our intra-range strategy. Action has now matured overnight, and – as we head into a fresh European session – what of levels that we are keeping an eye on in the bitcoin price today, and how can we try and draw profit from the market on the back of these parameters? Take a quick look at the chart.
As the chart shows, the levels that we are watching today are relatively tight compared to those that we had slated as the ones to watch last night. In term support lies at 235.47, and in term resistance sits at 237.04. With less than two dollars worth of range to play with, our intra-range strategy is out of the window today. Instead, will focus on the breakout try and draw a scalp profit from the market.
If we can get a break above in term resistance, a close above 237.04 would put us long towards a short-term target of 240 flat. On this trade (and bearing in mind not got much room to play with), a stop loss around 236.5 will ensure things attractive from a risk management perspective.
Looking the other way, a break below in term support at 235.47 and a close below this level would put us short towards a slightly longer-term target of 231.99. Again a stop loss is valid on this one, with a little more room than on the long trade. Somewhere around in term resistance would do the trick as far as maintaining a positive risk reward profile is concerned.
Charts courtesy of Trading View