Bitcoin Price Holds Range; Action Imminent?

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Shortly before the markets closed in the UK yesterday evening, we published our twice-daily bitcoin price watch analysis piece. In the piece, we highlighted a number of the key levels we would be keeping an eye on in the bitcoin price throughout Wednesday evening, and suggested how we might respond to price reaching or breaking these levels as far as entering according to our scalp strategy was concerned. Now action has matured overnight, we are looking at a number of fresh key levels today to try and to draw profit from the market. With this said, what are these levels, and where will we be looking to get in in the event of any volatility? Take a quick look at the chart.

At the chart shows, action overnight has ranged between 226.82 to the downside (this now serves as in term support) and 230.76 to the upside (this serves as in term resistance today). These are the two levels that we are going to be keeping an eye on as action matures throughout the European session and beyond on Thursday. We are currently trading mid-range, so we will look for an initial upside run towards 230.76 – and a break above this level on an intraday chart – to validate a medium-term bearish bias. With such a break, we will look to an initial upside target of 234 flat, with a stop loss somewhere around current levels (229 flat would do nicely) ensuring we are taken out of the trade in the event of a bias reversal.

Looking the other way, if we see some downside movement, we will look for a break and a close below 226.82 (in term support) to put us short towards a medium-term downside target of 222.51. Once again, a stop loss somewhere around 229 flat will maintain a positive risk reward profile on the trade, and take us out in the event that we return to trade mid-range for just a small loss.

Charts courtesy of Trading View