In today’s early-morning bitcoin price watch piece, we highlighted the levels that we would be watching throughout the European session in order to help us dictate our entries and exits according to our intraday breakout strategy. As it turns out, we have had a pretty up-and-down day, but the range during the European session has not been that extensive. With this said, the overarching momentum suggests that we may see some action throughout the Asian session this evening, and – in turn – gives us some hope that we might be able to exercise our strategy and draw profit from the market from some volatility. So, with this said, what are the levels that we are watching this evening, and how can we get in and out according to our strategy to do just that.
Take a look at the chart below.
As you can see, the overarching momentum is slightly to the upside, with today’s action breaking through 267.98 and trading pretty much within a range defined by that level, and 271.98 to the upside. These are the two levels that we will be watching this evening, and they serve as in term support and in term resistance respectively.
First, we will be looking for a break above 271.98 (in term resistance) to validate a medium-term upside target of 275 flat. With about four dollars worth of reward in this trade, a stop loss somewhere around 270 is valid, and will take as out of the trade in the event of a bias reversal.
Looking the other way, if we get a break below 267.98, it would present us with a short-term bearish bias. On this trade, and assuming we get a close below this level, we will look to 265.91 as an immediate downside target. This is quite a tight trade, so a stop loss somewhere around 269 looks attractive.
Charts courtesy of Trading View