Earlier this morning we published our twice-daily intraday look at the bitcoin price, and suggested a few of the levels that will keep an eye on as action matured throughout Wednesday’s European session. Primarily, we outlined three potential scenarios. The first was a break of resistance and a run towards a medium-term target of 245.05. The second was a break of support and run down towards 238. A third, and the one that has actually occurred, was a holding of the range between 240 and 243, and a continuation of the range bound action we saw overnight. Now we are drawing to a close in the European session, what can we expect throughout the US afternoon? Take a quick look at the chart.
As you can see, in term support 240 flat held firm on its test shortly after 10:30 AM GMT this morning, and we are since run towards in term resistance at 243.09. Action over the last half hour or so it looks as though this level is once again set to hold, and the bitcoin price now looks as though we are heading back down towards aforementioned in term support.
An aggressive entry could be to enter short now, under this assumption, with a stop loss just ahead of 243 – somewhere around 243.75 – in case we do get a break back up towards resistance. Alternatively, we could wait to see what happens around 240 flat, and enter short towards a more Conservative downside target of 238.5 on a break of support, with a stop somewhere around 240.5 to keep our risk profile positive.
If as we test support we get a bounce and correction to the upside, a long trade towards aforementioned resistance with a stop just below in term support could be a nice range driven entry.
Charts courtesy of Trading View