Earlier this morning, we published our twice-daily bitcoin price watch piece. In the piece, we looked at a couple of key levels that we would be watching as action matured throughout the day across the European session, and suggested how we might get in and out of the market according to entering on our intraday or intra-range scalp strategy was concerned. Action has now matured, and – as we head into the Asian session – what of levels that we are watching this evening, and how can we look to get in and out of the markets once again and draw profit? Take a quick look at the chart.
As you see, action today has seen price trend downwards throughout the majority of the session, and break through in term support mid-afternoon GMT. However, having broken through this level, we quickly returned to trade within the range we defined this morning. We will watch 266.99 as in term support once again, and 271.41 as in term resistance.
With any luck, the upside momentum we are currently seeing will just be a correction having broken through support, and a retest of support as resistance, and we can maintain the bearish momentum and run down towards our medium-term downside target of 261.62. However, if we returned to trade within range, we might look to enter long towards 271.48 on a break of our stop loss at 268 flat. On this trade, a fresh stop loss somewhere around 266 will maintain a positive risk reward profile on the trade. If we get a bitcoin price break of 271.48 tonight, it will put us long towards the target we mentioned this morning at 275 flat. Once again, a stop loss is necessary on this trade, so somewhere around 270 flat keep things attractive from a risk management perspective.
Charts courtesy of Trading View
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