Earlier this morning we published our twice-daily bitcoin price watch analysis piece. We highlighted the levels that we would be looking at during the European session, and suggested how we would respond to price reaching these levels. Now action has matured throughout today’s session, what are the levels that we are keeping an eye on in the bitcoin price this evening, and how can we get in according to our scalp strategy and draw profit from the market? Take a look at the chart.
As you can see from the chart, the levels that we were keeping an eye on this morning remain the ones to watch as we head into the beginning of the US afternoon session. In term support lies at 230.99, while resistance sits at 235 flat.
We have traded around in term resistance all day, having reached it earlier this morning and corrected a couple of times on retests. Now trading just shy of 235, it looks as though we may well get a breakout over the coming couple of hours. With this in mind, we will look for a close above 235 flat to validate an initial upside target of 240, with a stop loss somewhere around 233.5 maintaining positive risk reward profile on the trade.
If we get a correction from 235, we will look for some downside momentum to put us short on an intra-range trade towards a short side target of in term support at 230.99. Looking further ahead than this, a close below 230 would validate a medium-term bearish bias towards an initial downside target of 226 flat. On this entry, a stop loss somewhere around 233 will maintain a 2 to 1 risk reward profile, and ensure we are taken out of the trade in the event that price returns to trade within the range on a reversal.
Charts courtesy of Trading View