Earlier this morning we published our twice-daily bitcoin price watch piece highlighting the action we had seen in bitcoin over the weekend, and suggesting a few of the key levels that we would be looking at as we headed into Monday’s European session. Now action has matured throughout the day, we have seen quite a lot of volatility, and so a fresh set of key levels have come to the fore. With this said, what are the levels that we are now watching, and how will we be looking to enter into any volatility in the bitcoin price overnight? Take a quick look at the chart.
As the chart shows, shortly before 3 o’clock GMT, the bitcoin price broke what we had slated as in term support and put us short towards our near-term target. Our target was hit pretty much straight away, and we are now trading between in term support at 220.98 (a level that served as a floor mid-afternoon) and in term resistance at 226 flat. These are the levels to watch as we head into Monday evening.
We are currently trading mid-range, so we don’t have an initial bias, but we will look for a run up towards 226 flat and a break above this level (with an intraday close on the candlestick chart) to validate a bullish bias, and an initial upside target of 231.21. A stop loss somewhere around 223 will maintain a positive risk reward ratio, while leaving enough room for a downside spike in the event that we return to trade mid-range short-term.
If the bearish momentum that we saw this afternoon returns, and we get a run down towards (and a break of) 220.98 – in term support – it would put us short towards a medium-term downside target of 215 flat. Once again, a stop loss around 223 flat will take us out of the trade in the event of a bias reversal.
Charts Courtesy of Trading View