So yesterday evening in our twice daily bitcoin price watch piece, we highlighted the levels that we were pitching to keep an eye on during Tuesday’s Asian session. We suggested that – if we got any overnight volatility – we would look to get in and out of the markets according to our intraday strategy. Action has now matured overnight and as we head into a fresh day in Europe, here are the levels we are looking at this morning. First up, take a quick look at the chart to get an idea of recent action.
As the chart illustrates action overnight saw the bitcoin price remain constricted between the two levels that bring us in term support and resistance today – 247.99 as in term support, and 250.98 as in term resistance. These are the two levels to watch this morning.
We will initially look for a break above in term resistance (as this falls in line with the overarching bullish momentum) to put is in a long entry towards 255 flat. A stop loss on this one somewhere around current trading levels – 249.5 – will ensure we are taken out of the trade in the event that the bitcoin price turns around and returns to trade within our predefined range.
Looking the other way, a break back down below in term support would signal a short entry (so long as we can close below that level) and put is in a downside trade towards an initial downside target of 244.52 – the most recent swing low outside of our range. Again, a stop loss is required here – again current levels should do the trick.
Charts courtesy of Trading View