Perhaps as a response to what’s happening in Greece, action in the bitcoin price throughout the first off this week has been pretty volatile. Having seen some initial strength throughout Sunday evening and the Monday European session, Tuesday’s action brought us a decline and a bounce along resistance for pretty much the entire day. However, a look at this morning’s action gives us some reprieve on this decline, and we have seen what looks to be a temporary return to the upside momentum we saw at the beginning of this week. So, with this said, what of levels that we are watching as we head into today’s European session, and how can we draw profit from the market on any volatility? Take a quick look at the chart.
As you can see, from lows on the day of 263.01, we bounced to intraday highs just ahead of 269.77, quickly corrected to 265.20, but are now trading closer to the former forming an intraday pin bar on the action. These two levels are the ones that we will be watching today – with 265.20 bringing us in term support and 269.77 offering us in term resistance.
We will first look for a break above 269.77 to validate a short-term upside target of 272 flat, with a stop loss on the trade somewhere around current levels (268.5) helping us to maintain a positive risk to reward ratio and the trade.
Looking the other way, if the downside momentum does return, we will look for a break below 265.20 (in term support) to bring 263.01 into play medium-term. Once again, a stop loss within the range – somewhere around 266.50 on this trade – will keep things attractive from a risk management perspective and ensure that we are taken trade in the event that we do get a return to the volatility and a fundamental bias reversal.
Charts courtesy of Trading View