In this morning’s bitcoin price watch piece we highlighted the levels that we were going to keep an eye on throughout today’s session, and suggested where we would be looking to get in and out of the market according to our intraday strategy if we got any volatility. Action has now matured throughout the day and – despite the steep decline in the bitcoin price over the weekend – seems to have stabilised little bit throughout the European session. However, this being said, the current action may simply be a correction, and we could be set for further downside momentum this evening. So, let’s take a look at what we are looking at during tonight’s Asian session, and see if we can figure out where we can draw a profit from the market if we get any volatility. Have a look at the chart first.
As you can see, the bitcoin price broke through the level we had slated as in term support shortly after we published our analysis, and put us in a short trade towards our medium-term downside target. However, we quickly broke back above this level, and returned to trade within range – taking out our stop loss shortly after midday GMT. This being the case, the levels we slated this morning as the ones to watch remain those we are keeping an eye on during tonight’s evening session. 226.03 gives us in term support, while 231.70 gives us in term resistance.
We will initially look for a bounce from 226.03 to put us long towards in term resistance, with a stop loss somewhere around today’s lows – 225 (or just a little bit below) – keeping things attractive from a risk management perspective. Alternatively, if we break below in term support, we will enter short with a near-term target of 222 flat and a stop loss somewhere around 228.
Charts courtesy of Trading View