For this mornings bitcoin price watch piece, we are going to take a look at action overnight to try and ascertain whether the levels we had slated as the ones to watch during the Asian session remain relevant today, and from this, try to gain an insight into how we are going to go about playing todays action. From this, we will see whether out intraday breakout strategy or intrarange strategy are more relevant for today’s action. First then, take a quick look at the chart.
As you can se, action overnight saw a continuation of the overarching bullish momentum we have seen over the last few weeks. Often recently we have seen relatively flat action during the European sessions, followed by a pop up or down during Asia. Last night was no different. The Asian session saw the bitcoin price break to the upside and reach overnight highs just shy of 293 flat, at 292.99. This level brings us our in term resistance for today’s session. In term support sits at the most recent swing low of 286.37. These are the two levels we will be keeping an eye on today Since the range is not overly wide, we are probably best bringing our breakout strategy into things, rather than our intra range.
So, with this said, we are going to look initially for a break and a close above in term resistance at 292.99 to validate a medium term upside bias, and put us long towards a scalp target of 296 flat. On this one, a stop loss somewhere around 291 will ensure we maintain a positive risk reward profile on the trade.
Looking the other way, a close below in term support at 286.37 would out us short towards a downside target of 283.59, with a stop loss at 288 keeping things attractive from a risk management perspective.
Charts courtesy of Trading View