Yesterday afternoon, we got a little bit of bullish momentum in the bitcoin price, during European session, and – in our twice-daily bitcoin price watch piece, we suggested that this upside momentum may spark the beginning of a longer-term reversal, and present us with some more solid bullish action as the week progressed. We highlighted a couple of levels would be keeping an eye on, and – now price has matured – we can see that while these levels held for a period, they have since broken and it looks as though – during today’s session – we’re going to get a return to the overarching bearish momentum we have seen over the past couple of weeks. With this said, what of levels were watching today, and how we looking to enter according to our scalp strategy? Take a quick look at the chart.
As the chart shows, we traded up towards 226.47 last night – a level that now serves as in term resistance – and, having done so, the bitcoin price collapsed to the medium-term lows of 222.79. The latter of these two levels now gives us in term support. Boris was trading closer to support and resistance, we will look for a downside through initially, with a break below in term support putting a short towards 220 flat, with a stop loss around 223.6 maintaining a positive risk reward profile for us.
Our range is about four dollars wide, so if we get a bounce from current levels, a long entry towards in term resistance with a stop somewhere around 221.6 could be a nice aggressive range trade. As a continuation of this trade, if we can get a close above 226.47 an intraday basis, it would put us long again towards 230 flat, with a stop loss somewhere around 225.20 taking us out of the trade in the event of a bias reversal.
Charts courtesy of Trading View