A short while before markets closed in Europe last night, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted levels that we were going to keep an eye on throughout the Asian session, and pointed out that – due to the relatively weak action we had seen in the bitcoin price throughout the first half of this week – we would be implementing the same scalp strategy that we had taken on throughout the day session. Action has now matured overnight, and so as we head into a fresh European session, what of levels that we are watching in today’s bitcoin price, and what we look to get in and out markets according to any of our intraday strategies if we get any volatility? Take a quick look at the chart.
As you see from the chart, and courtesy of action overnight, things are a little more active today. We broke out of the range yesterday evening, and reached fresh weekly highs of 271.48 overnight. From this level with corrected towards what now serves as in term support at 266.99. These two aforementioned of levels were going to keep an eye on during today’s session.
We can initially look for a bounce from 266.99 to validate aforementioned in term resistance (271.48) as an intra-range upside target. On this trade, a stop loss somewhere around 265 flat will maintain a positive risk reward profile. If we break below in term support, we will enter short towards a slightly longer-term target of 261.62. A break above 271.48 would bring 275 flat into play medium-term, with a stop loss around 270 flat keeping things attractive from a risk management perspective.
Charts courtesy of Trading View