The bitcoin price has struggled over the last couple of days, as we have seen a number of sharp breaks of support translate to some downside momentum. However, today, following yesterday’s break, action has ranged throughout the majority of the day, and we are now trading just shy of a key level that – if broken – could spark a reversal and finally give us some bullish action in the bitcoin price this evening. That said, if current levels hold, it is likely that overnight we will see a return to the overarching bearish momentum. So, what are the levels that we are keeping an eye on in the bitcoin price as we head into the US afternoon session, and how can we enter on a break of these levels? As usual, take a look at the chart.
As the chart shows, we are currently trading between what now serves as in term support at 220.65 and resistance at 226.36. These are the two levels that we will be watching this evening. We are currently trading just short of the latter of these two levels, and so we will initially look for a break above 226.36 to validate a medium-term bullish bias with a primary target of 231.20; a stop loss somewhere around 244 keeping the trade risk-defined.
Looking the other way, if current levels hold, we will look for a break below in term support at 220.65 to validate a bearish bias with an initial downside target of 215 flat. In this trade, a stop loss somewhere around 223.50 will maintain a positive risk reward profile.
For the more aggressive trader, if current levels hold and we get a rejection at resistance, a short trade towards in term support with a stop somewhere around 228 flat could be a nice, aggressive, range type short trade.
Charts Courtesy of Trading View