Early this morning, shortly before the markets opened in Europe, we published our twice-daily bitcoin price watch piece. In the piece we highlighted the action we had seen throughout Thursday morning, and suggested a couple of levels we would be keeping an eye on as price action matured throughout the day. Now we have seen a full day of volatility, what are the levels we are keeping an eye on in the bitcoin price this evening, and how might we respond to the reaching of breaking of any of these levels as far as entering a scalp trade is concerned? Take a quick look at the chart.
As the chart shows, just as we suspected, we got a break out of our range shortly after we published our piece, and pretty much immediately ran up to take out our long target after we had been triggered. We did see some level of bounce action around support, but nothing to be concerned about. Since the hitting of our target, we have been trading just shy of what serves as today’s in term resistance around 236 flat, and this remains the level to watch as we head into this evening.
We will keep a close eye on action now, first to see if we get a break above this level. Such a break would put us long towards an initial upside target of 238.5, with a stop somewhere around 235 flat taking us out of the trade in the event of a bias reversal.
If, however, we bounce from current levels and get a downside correction, we could look to enter an aggressive short scalp trade – in range – towards today’s in term support at 233.76. A stop loss somewhere around 235 flat – once again – will ensure that, if we get a reversal, we are only giving up a small amount of capital.
Charts courtesy of Trading View