Late yesterday evening, shortly before the markets closed in the US, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted a number of the key levels that we would be keeping an eye on as the Asian session kicked off, and suggested how we would react to price reaching these levels as far as entering according to our intraday scalp strategy was concerned. As it turned out, we got very little action overnight, and – as we head into a fresh day’s trading – we are looking at a fresh set of parameters on which to base our actions today. Take a quick look at the chart.
As you see, the range bound parameters we have highlighted serve as in term support at 246.48 and resistance at 251.56. These are the levels that we will be watching today.
First, we will look for a break above 251.56 (in term resistance) to validate an initial upside target of 257.35. A stop loss somewhere around current trading levels (about 249 flat) will maintain a positive risk reward profile on the trade and take as out of our position in the event of a bias reversal.
Looking the other way, if we can get a break below 246.48, it will bring weekly lows at 239.97 (or those of you that read it this is the Spike down that we saw yesterday morning) into play as a medium-term downside target. On this trade, a stop loss – once again – somewhere around current levels will help take us out of the trade in the event that we turn around and return to trade within the range during the day.
Charts courtesy of Trading View