A little earlier on this morning we published our twice-daily bitcoin price piece, focusing on the levels that would be will looking at as the day matured, and how we would react to price reaching these levels as far as entering a long or short position was concerned. Now action has matured throughout the day, and we’ve got a pretty good picture of what we’re likely to see as we head into the US afternoon session and beyond. With this said, what are the levels we are now keeping an eye on, and did we manage to enter any positions during today’s session? Take a quick look at the chart.
As you can see, action today broke out to the upside and put us long towards 238.63. However, shortly after the breakout, we saw a decline back into the range and consequently we were taken out of the trade for a small loss. Now, we are looking at 234.0 flat as in term support, and 236.21 as in term resistance. These are the levels we will be watching during the evening (GMT). If we get a break above 236.21, we will look for an initial upside target of 238.63 (no different from our upside target this morning).
Conversely, if we get a break below 234.00 it will put us in short towards an initial downside target of 232.01. In this trade, we will add a stop loss somewhere around current levels (235 flat) that will ensure we are taken out of the trade for a small loss as we were in this afternoon’s long trade in the event of a bias reversal.
We said this this morning, but is worth reiterating, normally we would trade a range strategy between in term support and resistance, but at the moment action is so tight that we could easily get chopped out of any entries. For this reason, we are just looking at breakouts today.
Charts courtesy of Trading View