In this morning’s analysis, we highlighted the overnight decline we saw in the bitcoin price on Wednesday evening, and suggested that one of two things would likely happen throughout today’s session. First, that a continuation of the seemingly overarching bearish momentum would see a break of circa 415 flat, and we’d be looking at a potential 400 flat target before the week was out. The second, that the bulls would regain control and we’d see a tapering of the sell off, and in turn, an upside reversal that would bring us back in line with yesterday’s highs. As it turns out, things have remained relatively subdued. We did get a bit of an upside break a little earlier on this afternoon, and we got in long according to our breakout framework, but a reversal that brought us back into range took out our stop for a small loss. We’re flat at the moment, meaning we are free to get into the markets if action allows this afternoon.
So, with this said, what are we looking to trade in the bitcoin price this evening, and beyond into the the Asian session this evening? The chart below (15 minute, intraday) shows the last 24 hours of action, alongside our annotated key levels for tonight.
As you can see, in term support for this evening remains at 415.58 – intraday lows. In term resistance, however, has widened a bit to accommodate the aforementioned break. It now comes in at 424.51, giving us a circa ten-dollar range. Plenty of room for intrarange, so long at support and short at resistance.
On the breakout side of things, long on a break above 424.51 towards an upside target of 430 flat. Stop at 423 to define the downside risk. Looking south, short on a close below support with an initial downside target at 410 flat. A stop at 418 will keep things tight on the risk/reward side of things.
Charts courtesy of Trading View