Late yesterday evening, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted the levels that we were watching throughout the Asian session on Wednesday evening, and suggested how we would respond to price reaching these levels as far as getting in according to our intraday bitcoin price watch strategy was concerned. Now action has matured overnight, what are the levels that we are keeping an eye on in the bitcoin price today, and is there further profit to be drawn from either our intraday breakout strategy or our scalping strategy or an intra-range method? Take a quick look at the chart.
As you see, overnight action marked a return to the volatility we saw over the weekend in the bitcoin price. Overnight, we broke through 265.67, and are now trading mid-range between the aforementioned level (which serves as in term resistance) and in term support at 261.59. These are the two levels that we will be keeping an eye on during today’s session.
We will first look for a break below 261.59 (since this falls in line with the overarching bearish momentum) to validate a medium-term downside target of 255 flat. On this trade, a stop loss somewhere around 263 will help us to maintain a positive risk reward profile, while leaving enough room for us to chop back into the range without being taken out.
Looking the other way, a break back above 265.67 would validate 271.47 (weekly highs) as a longer-term upside target. Bear in mind, 270 flat will likely offer up some level of resistance before we reach our target here, so keep visiting consideration – the more risk averse trader might choose to use the aforementioned 270 as a near-term target before looking longer. A stop loss again around 263 will keep things tight from a risk management perspective on this trade.
Charts courtesy of Trading View