During yesterday’s session, we published a few technical analysis pieces detailing the action in the bitcoin price throughout the European morning. We highlighted a number of key levels that we would be keeping an eye on, both as far as defining a range and as far as targets and risk parameters were concerned, and – as the day matured – we entered a number of scalp trades to take advantage of the intraday volatility in the bitcoin price. Now, as we kick off a fresh European session, what are the levels that we are watching in the BTCUSD, and how can we draw profit from today’s action? Take a quick look at the chart.
As the chart shows, we saw a steep decline overnight on Monday, with price dropping to floors of 231.44 around 6:30 PM BST. From this level, we corrected to the upside, and now trade mid-range between what serves as in term support at 233 flat and resistance at 234.24. These two aforementioned are the levels to watch as we head into today’s session.
If we can get a break above 234.24 (we are trading relatively close to his level at the moment) then we will look to the upside with a long entry towards 236.99 – the level from which we fell overnight. It’s quite a run to reach our target, so a stop loss somewhere around 233.2 is valid as a risk management parameter.
Looking the other way, if 234.24 holds as resistance, we should get a run down towards 233 flat. A break below this level would put us short towards a medium-term downside target of 231.44. A stop loss somewhere around 233.5 will take us out of the trade in the event of a bias reversal, and ensure that we are not on the wrong side of an irretrievable loss.
Charts courtesy of Trading View