Late yesterday evening, shortly after the markets closed in Europe, we published our twice daily bitcoin price watch piece. The thesis of the analysis was rooted in our breakout strategy – essentially we would be keeping an eye on a few key levels throughout the Asian session, in the hope that we could take advantage of the volatility we have seen over the last week or so and scalp a few dollars on the bitcoin price. As we head into a fresh European session today, our strategy remains fundamentally unchanged, although action overnight has given way to a few new levels to watch. So, with this said, here’s what we are looking at for today, alongside how we will look to get in and out of the markets according to our intraday strategy. Take a quick look at the chart.
As the chart shows action overnight gave us some volatility and – as we had hoped – the potential for a short term entry. Today’s two key levels are in term support at 268.16 and in term resistance at 264.97.
Lets start with the upside. If we get a break above in term support at SUPPORT and close above this level on the intraday chart, we will look to enter long towards a medium term bullish target of 270 flat. On this trade, a stop loss somewhere around 267 will ensure we are taken out of the trade on a bias reversal without remaining on the wrong end of a decline.
Looking the other way, if price breaks below in term support and, once again, we get a close below this level on the intraday, it will put us medium term short towards 262.64. Again a stop loss is necessary – we will look to 266.5 as our placement on this one.
Charts courtesy of Trading View