In this morning’s twice-daily bitcoin price watch piece, we published our expectations for the day’s session across Europe. We suggested a number of the key levels that we would be keeping an eye on as action in the bitcoin price matured throughout the day, and pointed out where we would look to enter and exit in the event that we got a breakout according to our scalp strategy. Now action has matured throughout the day, are we saw watching the same levels, did we manage to gain on any positions today, and what are we looking at moving forward? Take a quick look at the chart below.
As the chart shows, shortly after we published this morning’s article, the level that we had slated as in term resistance at 230.76 held firm and we got a medium-term correction down towards the mid-range level of around 229 flat. From this level, we have just bounced up and down throughout the day, with in term resistance tested a couple of times shortly after lunch, but no decisive break as yet. As a result of this, the levels that we pointed out this morning remain the ones to watch this evening. In term support is at 227.01, and resistance at 230.76.
We will look for a break above 230.76 to put us long towards an initial upside target of 234 flat. If we can get this break, a stop loss somewhere around 228.5 will maintain a positive risk reward profile, while leaving us enough room to absorb a spike back down into the range.
Looking the other way, if we can get a sustained move to the downside, we will look for a break below 227.01 (in term support) to present us with an initial downside target of 223.95. With about four dollars worth of reward available, we can put a stop loss safely around 229 and maintain a positive risk reward profile on the trade.
Charts courtesy of Trading View