Bitcoin Price Collapses; What Now?

In this morning’s bitcoin price watch piece, we published our thoughts on how we expected bitcoin to mature during today’s European session, and suggested the levels that we would be keeping an eye on as price action matured throughout the day. We believed that – as driven by a fundamental bias out of Greece – we may see some risk off bullish action in the bitcoin price before the day closed. However, as it happens, the overarching bearish momentum that we have seen throughout the majority of this week remains the order of the day, and presents us with an intraday bearish bias as we head into this evening’s Asian session. So, with this said, what are the levels that we are keeping an eye on tonight, and how can we draw profit from the bitcoin price this evening? Take a quick look at the chart.

bitcoin price

As the chart shows, action today broke through 281.98 – the level that we had slated as in term support – shortly after lunchtime GMT. Having broken through this level, we broke down to intraday lows at 275 flat and – in doing so – took out our bearish target for a nice profit. From this level, we have since reversed to the upside, and are currently trading between the aforementioned 275 flat (which serves as in term support this evening) and 281.98 – the level that now presents us with in term resistance. This is the range we are watching tonight.

If we get some further bearish momentum, we will look for a break below 275 flat to validate 270 as a medium-term downside target. A stop loss somewhere around 277 will maintain a positive risk reward profile on the trade.

Looking the other way, if we can break back above 281.98, it would bring 287.15 into play medium-term to the upside, with a stop loss somewhere around 280 flat keeping things tight from a risk management perspective.

Charts courtesy of Trading View

Source

TheBitcoinNews.com – leading Bitcoin News source since 2012