In this morning’s bitcoin price watch article, we noted the levels that we would be focusing on during today’s European session. The levels in focus were in term resistance at $400 flat (weekend highs) and in term support at $382.77 – the most recent swing low, tested and held on numerous occasions. Action has now matured across the European afternoon, and these levels look to remain relevant in light of the current price.
However, in an attempt to stimulate some activity, we are going to tighten up this evening’s range in anticipation of a breakout. So, with this said, let’s take a brief look at today’s action, and see if we can define our parameters for tonight’s Asian session. As ever, take a quick look at the chart below to get an idea of our range.
As the chart shows, we are going to maintain $400 flat as in term resistance, as this has once again been tested this afternoon, and remains valid as the most recent swing high. Looking the other way, we are going to raise in term support to $392.66. This level has proven itself on a couple of occasions in the past, and as our most recent swing low, is an ideal focus region.
If we get a break above the aforementioned $400 flat, we will look for a close above this level to validate an upside entry, with an initial target of $410 flat. With about ten dollars’ of reward on offer, we’ve got five dollars’ risk available to us according to our predefined risk parameters. We probably wont need to use the full five dollars, however, so a stop around $397 looks good.
Looking to the downside, a close below support will put us short towards $382.56. Again, this is a ten-dollar trade, so a stop in the region of $395 looks attractive.
Charts courtesy of Trading View