Earlier this morning we published our twice daily bitcoin price watch piece. In the article, we highlighted the levels that we would be watching in the bitcoin price throughout Monday’s European session, and suggested where we would look to get in and out of the markets according to our intra-range and breakout strategies. Action has now matured throughout the session, and – as we head into the Asian session on Monday evening – what are we looking for from the bitcoin price now? Take a quick look at the chart.
As the chart shows, action today has been relatively tight, and – aside from some downside movement seen mid-range this afternoon – we pretty much end the day where we began. In term support sits at 254.01 for this evening, while in term resistance sits at 258.11.
Just as with this morning, we will incorporate both an intra-range strategy and a breakout strategy into tonight’s trading.
If we can get a break above 258.11, it will put us long towards an interim target of 261.46. On this trade, a stop loss somewhere around 257 will help keep our risk profile tight.
Looking the other way, if we get a bounce from 258.11 and a downside correction, we will enter short towards a medium-term target of 254.01 according to the parameters of our intra-range strategy. A stop loss somewhere around 259.5 will keep things attractive from a risk management perspective on this intra-range trade.
A break below 254.01 would put us short towards a medium-term target of 250 flat. Conversely, a bounce from in term support at 254.01 would put us long towards the aforementioned in term resistance level of 258.11. On this trade, a stop loss somewhere around 253 will ensure we are taken out of the trade in the event that price reverses from the bounce and breaks back below in term support.
Charts courtesy of Trading View