Earlier this morning we published our twice-daily bitcoin price watch analysis piece, highlighting the levels we were keeping an eye on in the bitcoin price throughout Wednesday’s session, and suggested a few of the key levels will be looking to trade the breaking of during the day. Now action has matured throughout the session, and we are heading into the US afternoon session. With this said, what of levels were keeping an eye on in the bitcoin price this evening, and when we be looking to enter according to our scalp and range bound strategies? Take a quick look at the chart.
As the chart shows, having briefly traded below our in term support at 222.79 around the time we reported this morning’s price watch piece, bitcoin quickly recovered and bounced to trade at least half of its range before lunchtime GMT. After a short consolidation period, we once again saw a return to this bullish momentum, and traded to a point just short of our into range target at 226.47. We’ve seen a medium-term correction, we are now trading somewhere around 225 flat, but we are still confident that we get our target before the day is out.
Since we haven’t broken range yet, that he loves that were keeping an eye on in the ones that we slated this morning – 222.79 as in term support and 226.47 as in term resistance. Our strategy this evening will involve trading short from resistance with a stop loss about two dollars beyond that level, and long at support with – once again – stop loss somewhere around 220 flat keeping our risk reward profile positive.
If we get a break of either of these levels, we will enter long at resistance towards 230 flat as an initial upside target, and short at support towards 219 flat, with a stop loss is placed accordingly.
Charts courtesy of Trading View