So this morning in our twice-daily bitcoin price watch piece, we published a chart that highlighted the levels we were watching during today’s session. The main premise of this morning’s analysis was the fact that – with the tight action we have seen over the last few days – we had to employ an intraday scalping strategy rather than our more traditional wide range breakout strategy. Action has now matured throughout the European session on Tuesday, and – as we head into a fresh evening’s trading – how did our strategy fare, and where will be looking to get in and out of the markets this evening? In short, has anything changed, or are we looking at a similar Asian session? Take a look at the chart.
As you see, our strategy afforded us a quick entry on today’s action according to our predefined resistance, but us having entered long, price quickly reversed and we returned to trade within range almost instantly. With this said, for tonight’s session, in term support remains at 263.05, while resistance sits as it was this morning at 266.78. These will be the two levels that we watch this evening to try and gain entry – hopefully with a different outcome than today’s position.
If we can break above resistance again tonight, it will put us long towards an immediate (and admittedly short term) target of 268.96. A stop loss on this one somewhere around 266 flat will help keep things tight from a risk management perspective.
Looking the other way, a break below 263.05 will bring 260.72 into play to the downside, with a stop loss on this one looking good around 264 flat.