In this morning’s bitcoin price watch piece, we pointed out that wouldbe watching two key parameters as our signal points during today’s European session. We suggested that – on a break of these levels – we could get in and out of the market according to our intraday breakout strategy, and draw profit from any volatility. Action has now matured throughout the day, and we did manage to get into a trade, but we were quickly taken out by a turnaround in the bitcoin price this afternoon. So, with this said, what are we looking at this evening, and where will we look to get in and out of the markets according to our strategy during the Asian session? Take a quick look at the chart.
The chart illustrates the trade, with us breaking below in term support at 238.28 just before midday, and initially getting a run down to intraday lows of 237 flat. However, from this level, we quickly reversed and returned to trade within range – currently just shy of 240 flat at European business close.
The levels that we are keeping an eye on this evening remain – therefore – 238.28 as in term support and 242.93 as in term resistance. If we can get a break back below 238.28, it will once again put us short towards a medium-term downside target of 234 flat. A stop loss somewhere around 240 will help us to keep things attractive from a risk management perspective.
Looking the other way, if we break above 242.93 (in term resistance) it will put us long towards a short-term target of 246.24, with a stop loss around 241 giving us an approximate 2 to 1 risk reward profile.
Charts courtesy of Trading View