Late yesterday evening, shortly before the markets closed in Europe, we reported our twice-daily bitcoin price watch piece. In the piece we highlighted the levels that we would be keeping an eye on throughout the Asian session, and suggested that we may see some further bullish momentum in the bitcoin price if we got a break of both yesterday’s highs of 268 flat. Now action has matured overnight, did we manage to get this break, and further, what are the levels that we are keeping an eye on today? Also, how can we respond to price reaching these levels as far as getting into a position according to our breakout strategy is concerned? Take a quick look at the chart.
As the chart shows, despite the strong bullish momentum we saw during yesterday’s session, we didn’t manage to break the intraday high, and – having tested it around six or 7 PM yesterday evening, broke back down through in term support and lost some strength in the preceding action. Now we trade within range, between in term support at 256.9 and resistance at 261.7. These are the levels that we are watching during today’s session.
First of all, we will look for a break below 256.9 to validate a short entry with an initial downside target of 250.4. On this trade, a stop loss somewhere around current levels (259 flat) will ensure we are taken out of the trade in the event of a bias reversal for just a small loss.
Looking the other way, we can get a return to yesterday’s momentum, we will look for a break above 261.7 to validate a medium-term upside entry towards aforementioned highs at 268 flat. We have got a bit of room here, so once again, a stop loss somewhere around 259 flat will make the trade attractive from a risk management perspective.
Charts courtesy of Trading View