In this morning’s bitcoin price watch piece, we highlighted the levels that we would be looking to take advantage of as action matured throughout Wednesday’s session in the bitcoin market. In it we defined our range, and suggested that – contrary to our recent combination of both an intra-range and breakouts strategy – we would focus purely on the breakout side of things and look to enter long or short on a breaching of either support or resistance to the downside and upside respectively. Action has now matured throughout the day, and we are pretty much trading around the same levels as we were when we outlined our strategy this morning. With this said, this doesn’t mean that we might not see any action during tonight’s Asian session, and further, does not mean that we can’t draw any profit from any volatility going forward. So, with this said, what are the levels that we are keeping an eye on this evening, and where are we looking to get in and out of the markets throughout Asia? Take a look at the chart below.
As you can see from the chart, in term support is defined by 275.71, and resistance is defined as 277.87. These are the two levels that we will be keeping an eye on during tonight’s session. We’re currently trading pretty much mid-range, so we will look for a break above 277.87 to validate a medium-term upside bias, with a pretty tight initial target of 280 flat. A break above this level would bring 281 into play slightly longer-term.
Looking the other way, a break below 275.71 would bring a short-term bearish bias into play. If we get in according to this trade, a target of 270 flat is valid as the overarching momentum looks to be with the bears at the moment. A stop loss on this one somewhere around 276.5 will help keep the trade attractive from a risk management perspective.
Charts courtesy of Trading View