Bitcoin Price Entry; Stop and Return

In this morning’s bitcoin price watch piece, we published our thoughts on the action we saw overnight in the Asian session on Tuesday. We suggested that if we got a continuation of the bearish momentum that we saw during the session, it might give us an opportunity to get in short on the back of this momentum, and draw profit from the bitcoin price during Wednesday’s European action. Action has now matured throughout the day, and – while we have seen some volatility – it has not entirely been in our favor. So, with this said, what are the levels that we are keeping an eye on in the bitcoin price this evening, and what did action today tell us about the likely future movements of the bitcoin price going forward? Take a quick look at the chart.

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As the chart shows, we did get a break through in term support shortly before 10 AM GMT this morning. We further got a close below this level, and this put us short towards our immediate downside target of 285 flat. However, action over the hours that followed brought us to trade back within the range, and we were quickly taken out according to our predefined risk management parameters. With this said, in term support remains at 288.15, and resistance at 292.19 as we head into this evening’s session. If the current action is purely a correction from the bearish movement we saw this morning, we could look to enter short again on a break of 288.15 towards a reaffirmed target of 285 flat. A stop loss somewhere around 289.5 will ensure that – once again – we are taken out of the trade in the event of a bias reversal. Looking the other way, if we get a break above 292.19, it would put us long towards an immediate upside target of 295 flat. A little bit tighter than this morning’s upside target, but still worth going for at about three dollars worth of reward.

Charts courtesy of Trading View

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