So this morning we noted that we had hit 300 flat in the bitcoin price and that – as a result – our overarching bias was to the upside for today’s European session. The session is now drawing to a close, and while we haven’t seen an exorbitant amount of volatility, there has been some upside action. Action that, according to the rules of our intraday strategy, we have managed to take advantage of. With this said, and as we head into this evening and a fresh Asian session, what are the levels we are keeping an eye on, and where can we look to get into the markets on any further volatility in the bitcoin price this evening? Take a quick look at the chart.
As you can see, and in response to today’s volatility, we have shifted our levels accordingly. In term resistance now sits at 308.43, while support holds at 298 flat. These are going to be the levels we watch this evening. We are sticking with our breakout strategy for the time being, so if we can get a break above in term resistance, we will look for a close above this level to validate an upside entry towards a (little longer term than normal) target of 312 flat. On this trade, a stop somewhere mid range will define our risk nicely – as close as possible to 301.5 works.
Looking the other way, if action breaks to the downside, we will look to enter short on a close below that level to validate a medium term downside bias and a short position towards 293 flat. This one is a little shorter term than the upside entry, and so a slightly tighter stop is necessary. Again somewhere mid range will work, around 300 flat should do nicely.
Charts courtesy of Trading View