A little while before markets closed in Europe yesterday evening, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted the levels that we would be keeping an eye on in the bitcoin price throughout Wednesday evening, and suggested how we might respond to price reaching or breaking these levels in the event that we got some volatility, and could enter according to our intraday breakout strategy. Now action has matured overnight, and we have seen some pretty erratic movement, so, with this said, what are the levels that we are watching during today’s European session, and how can we approach the bitcoin market going forward? Take a quick look at the chart.
As the chart shows, we broke through what we had slated as in term support shortly before 9 PM GMT yesterday evening. We had initially targeted 264.04, but the bulls quickly regained control and we broke back to trade above our entry, being taken out for a small loss on the trade. Unfortunately, we again traded back below support, putting us short again towards our initial downside target. Once again, we returned to trade within range and we were taken out of the trade for a small loss. Now, as we head into today’s session, the levels we were watching last night are exactly the same as the ones we are watching this morning. In term support lies at 268 flat, while resistance sits at 273.24. We’re currently trading mid-range, and we will look for a break below 268 to put us short towards the aforementioned downside target of 264.04. Looking the other way, if we can get a break above 273.24, it would put us long towards 276 flat medium-term. Hopefully, we won’t get chopped out as many times as we did last night during today’s session, but we will keep our stop losses tight just in case.
Charts courtesy of Trading View