Earlier this morning we published our twice-daily bitcoin price watch piece. In the piece, we highlighted the levels that we would be watching throughout Tuesday’s European session, and suggested that – despite our use of both our breakout and intra-range strategy’s overnight during the Asian session – we would switch to just a breakout strategy today. Action has now matured throughout the day, and – as we head into a fresh Asian session – did we manage to get in and out markets according to our breakout strategy, or is still stuck within the range we highlighted earlier? Further, what are the levels that we will be watching during today’s session, and which of our strategies will we be looking to implement? Take a quick look at the chart.
At the chart shows, action today initially broke below the level we had slated as in term support, but quickly returned to trade within the range and took us out of our short trade by taking out our stop loss. However, we quickly broke back below this level, and ran down towards our target. Having corrected from what now serves in term support at 277.39, we return to in term resistance at 279.36, and currently trading mid-range between these two levels. These are the ones that we will be watching this evening. We will look for a break above 279.36 to validate a medium-term upside bias, and a long entry towards 281.6. On the trade, a stop loss somewhere around 278.80 will help us maintain a positive risk reward profile on the trade.
Looking the other way, a break below 277.39 would put us short towards a medium-term target of 272 flat. On this trade, a stop loss somewhere around 278 flat will keep things attractive from a risk management perspective.
Charts courtesy of Trading View