A little earlier on this morning we published a piece highlighting the action in the bitcoin price on Tuesday evening and throughout Tuesday night, and offered up some suggestions as to the levels we will be keeping an eye on during Wednesday’s session in order to help us form an intraday bias throughout European business hours. Action has now matured throughout the day, and it looks as though – for now at least – BTCUSD has found a temporary floor. With this said, what are the levels we are watching as we head into the US afternoon session and beyond? Take a quick look at the chart.
While we try to refrain from forming an intraday bias before our key levels are struck, it is difficult at the moment is to look too far to the upside with any real conviction. This said, however, and with today’s action in mind, we will be looking at two main levels as our bias signal levels this afternoon. The first, in term support at 240.66. With seen price reversal this level on numerous occasions in the past, and it will likely serve up some friction if price falls from current levels to reach it. If we get a break below this level, it would give us a bearish short-term bias and validate 237.77 as an initial downside target. A stop loss just above 242.66 will get as out of the trade in the event of a reversal.
Looking the other way, our upside signal level is 250 flat. We would look for a close above the 250-252 region on the intraday chart to validate 256.30 short-term. Once again, if we were to enter long, we would define risk with a stop loss around the 249 flat mark – just make sure that if the overarching bearish bias returns post break, we only exit the trade for a small loss.
Charts courtesy of Trading View