This morning we suggested that – as a result of the action we had seen in the bitcoin price over the weekend – we may finally get some movement during today’s European session. Action has now matured, and as it turned out, we have pretty much just ranged sideways between the two levels we had slated as today’s ones to watch. As we head into an Asian session this evening, do these levels still hold, and which of our two primary strategies will we be looking to use in order to get in and out of the markets accordingly? Take a quick look at the chart.
As you see, 238.44 remains as in term support for this evening, while 244.19 holds as in term resistance. During today’s session, we have trended upwards slightly to reach intraday highs just shy of 243, and correct to where we now trade mid-range around 241.3.
If we can run up towards 244.19, it will give us two options. The first, to look for a close above this level, and enter long towards 250 flat with a stop loss around 242.5. The second, would be to wait for a downside correction, and enter short towards in term support at 238.44.
Looking the other way, a run down towards 238.44 would have us on the lookout for a close below this level – a situation that would put us short towards 233.88 for a medium-term bearish trade. On this one, a stop loss somewhere around 240 flat should help to keep things attractive from a risk management perspective.
Conversely, if we bounce from 238.44, it will give us an excuse to go long towards in term resistance on an intra-range trade, with a stop loss somewhere around 237 flat helping us to maintain a positive risk reward profile.
Charts courtesy of Trading View