In this morning’s bitcoin price watch piece, we noted the recent action we have seen in the markets – more specifically, the overarching bullish momentum. For the past week or so we have seen consistent strength in the bitcoin price, with the charts generally following this pattern: break through resistance, register some gain, trade sideways, repeat. For the most of the week the Asian session has been the catalyst behind the gains, while the European and US sessions have seen range bound action. Today, however, the action we have seen has reversed the trend, with Europe staging some gains. So, as we head into tonight’s Asian session, what are we looking at from a key level perspective, and where we will target if we see some volatility? Take a quick look at the chart.
As you can see, today’s action has brought us to trade just shy of what now serves as in term resistance at 263.06. Our intraday strategy put us long from 259.88 on the breakout, and we are currently targeting 265, so we wont enter a secondary trade until that level is reached. For those not yet in on the action, however, a long trade on a break of (and a close above) in term resistance at the aforementioned 263.06 would be a nice entry, with a target of circa 267. On this trade, a stop loss somewhere around 261 flat should make sure you are taken out of the trade of just a small loss in the event that we see some medium term selling pressure.
If we do give back some of today’s gains, and we reach in term support at 259.88, we will look to enter short towards 256.52 – a relatively short term downside scalp entry.
Charts courtesy of Trading View