This last few days have been a tumultuous period across the equities market space. With global indices crashing yesterday as a result of the Chinese downturn, we are seeing some fallout bearishness in the majority of tradable asset markets. The bitcoin price is no different. There are some suggestions that bitcoin may offer investors an opportunity to hedge against decline. Gold has generally served as this type of safe haven in the past – and when the Greek crisis happened a couple months back we saw some gains in the bitcoin price, but as yet we are still to see any similar movement. This does not mean, however, that we need to sit out of the markets. There is plenty of volatility to be taken advantage of with our intraday breakout strategy, and here are the levels that we will be keeping an eye on. Take a quick look at the chart.
As you can see, bitcoin declined to reach overnight floors of just below 200 flat to the downside, and this now gives us a medium term target for a downside break. 207.73 gives us in term support, so we will look for a break below this level to validate a short entry with a stop loss somewhere around 210 flat.
Looking the other way, a break above in term resistance at 215.95 will offer us an opportunity to go long towards 223.47 to the upside. Once again a stop loss is warranted here – especially with all the volatility we have seen – so somewhere around current levels at 213 looks attractive.
Charts courtesy of Trading View