Despite what we have said over the last few days in our bitcoin price watch pieces, we have had startlingly little volatility across the market this week. We focused on the upcoming interest rate decision out of the Federal Reserve, and suggested that – on the back of the announcement – we could see some considerable volatility. Why? Because whichever way the announcement comes out, we are likely to see investors run to the hills (figurative expression for a shift from risk on to risk off assets). We also suggested that we hoped bitcoin could present itself as one of the risk off assets – similar to gold or silver. As it happened, and as we have mentioned, this has not been the case. But that does not mean that it will remain as not being the case going forward. The interest rate decision is scheduled for today, and – if we get something unexpected – we will definitely see some volatility, and hopefully see some upside momentum in the bitcoin price. So, with this said, what are the levels that we are watching today, and where can we look to get in and out of the market according to our intraday strategy? Take a quick look at the chart.
As you see, and in response to a potential movement today, we are keeping things tight from a risk management perspective. In term support lies at 227.62, or resistance lies at 230.48. These parameters define our range today. We will initially look for a break below 227.62 to validate a medium-term downside entry towards 223 flat. On this trade, a stop loss somewhere around 229 flat will help keep things attractive from a risk management perspective. Looking the other way, a break above 230.48 will validate a short term upside target of 233 flat. Once again a stop loss is necessary, so somewhere around 229.5 keep things positive yet gives us just enough room to avoid being chopped out in the event that we return to trade within range.
Charts courtesy of Trading View