Earlier this morning, we published the first of our two bitcoin price watch pieces highlighting the downside break we saw in the markets overnight, and suggesting that – in response to the bitcoin price returning to trade within our predefined range – we would maintain the levels we had previously slated as the ones to watch for today’s European session. Action has now matured throughout the session, and has been relatively lackluster from a volatility perspective. With this said, and as we head into the Asian session, here’s what we are looking at tonight. Take a quick look at the chart to get an idea of how today’s action is going to influence our approach.
The first thing you will notice is that the bitcoin price has bounced a few times from the level we slated as in term support this morning at 320.39. The fact that price has reversed from this level on numerous occasions today makes it even more relevant than it was this morning, and so we will maintain it as support this evening. In term resistance has tightened to 323.52, giving us a real tight range to play with in anticipation of a breakout.
We will initially look for a close above in term support to validate a medium term upside entry towards a target of 326.07. This is a pretty tight target, so a tight stop is necessary – somewhere around 322.50 should do the trick.
Looking the other way, a close below in term support at 320.39 would put us short towards 317 flat to the downside – overnight lows. Notice we broke below support a few times today but didn’t close below, hence us not initiating any short positions. A stop loss on this one somewhere in the region of 322 flat keeps things attractive from a risk management perspective.
Charts courtesy of Trading View