Yesterday we saw the bitcoin price decline throughout the majority of the day, bottoming out just ahead of 294 flat just before midnight GMT. The trend fell in line with the overarching bearish momentum we have seen over the last 48 hours or so – which in turn comes as a wider market correction of the bull run we saw over the last few weeks. Action has now matured across the Asian session, and as we head into a fresh day of European trading, what are the levels we are keeping an eye on in today’s bitcoin price, and where are we looking to get in and out of the markets according to our intraday breakout strategy? Take a quick look at the chart to get an idea of what’s on.
As the chart illustrates, the levels that define today’s range in the bitcoin market are in term support to the downside at 314.70 and in term resistance to the upside at 335.14. We are currently trading just shy of resistance, so we will address the potential for an upside breakout first.
Specifically, if we see a break above, and a close above, in term resistance at 335.14 it will put is in a long entry towards a medium term target of 345 flat. On this one, a stop loss just the other side of our entry level – somewhere around 332 flat – will ensure we are taken out of the trade in the event of a bias reversal.
Looking the other way, if we correct from current levels, we will look to enter short on an intrarange trade towards our standard intrarange downside target of in term support – in this instance, 314.70. Again a stop loss is required, and again a level just the other side of our entry should do the trick – somewhere around 337 will do nicely, perhaps a little higher for the more aggressive trader.
Charts courtesy of Trading View