Bitcoin Price Rockets; Bulls in Control

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Earlier on this morning, shortly before the markets opened in the UK, we published our twice-daily bitcoin price watch piece. In the piece we highlighted the levels that we would be keeping an eye on in the bitcoin price during today’s session, and suggested how we might respond to price reaching or breaking these levels as far as getting in on a potential breakout was concerned. Action today has certainly validated our breakout strategy, and we have had a number of opportunities to get in and out of the markets according to our predefined targets. With this said, what are the levels that we are keeping an eye on in the bitcoin price this evening, and how can we draw further profit from what looks to be an exciting and tradable market at the moment? Take a quick look at the chart.

The chart shows today’s action, and also highlights the levels that we are watching throughout the US afternoon and into the Asian session this evening. Quickly trading mid-range, with in term support defined as 240.45 and resistance at today’s highs of 252.05. These are the ones to watch. If the bullish momentum continues, and the current downside action proves to be nothing more than short-term correction, we will look for a break above 252.05 to validate a medium-term upside target of 256 flat. A stop loss somewhere around 250 flat will maintain a positive risk reward profile.

Looking the other way, if we get a run down towards in term support, a break below 240.45 would put us short towards an initial downside target of 234.35 – just ahead of weekly lows. On this trade, a stop loss around 243 flat will ensure we are taken out of the trade in the event of a bias reversal, while also leaving enough room for us to survive a chop out if we return to temporarily trade within range.

Charts courtesy of Trading View