The extent to which today’s action is representative of what’s going on fundamentally in the bitcoin space is unclear – but one thing we do know is that after yesterday’s gains in the bitcoin price, we expected some continuation of the trend. In this morning’s bitcoin price watch piece, we outlined the levels we would be looking at to try and get in and take advantage of any such continuation. However, during Wednesday’s session, the bitcoin price has remained relatively stable. We tested support a few times a little earlier on this afternoon, but with no candlestick closes outside of our predefined range there has been very little for us to trade. With this said, let’s see if we can get in and out of the bitcoin price market this evening, and take advantage from any Asian session volatility using our intra day strategy. First, let’s redefine our key levels.
As the chart shows, the levels we had slated as the ones to watch a little earlier on today remain those in focus this evening and beyond – with in term support at 243.70 and resistance holding out at 248.15. These are going to be the levels to keep an eye on tonight.
If we break below in term support and can achieve a close below this level on the intraday chart, it would put us in a short trade towards a medium term target of 238 flat. As with this morning’s risk management, a stop loss just ahead of support (somewhere around 245 flat) will ensure we don’t get chopped out while still keeping things attractive from a risk management perspective.
Looking the other way – if we ca run up (and break above) in term resistance, it will give us an excuse to enter long towards a predefined target of 252. A stop loss right around 246 keeps our risk defined as positive.
Charts courtesy of Trading View