It is getting harder and harder to predict action in the bitcoin price as late. Just when we think the volatility has come to an end, we get a pop up or down that marks a return to action. This, of course, is not necessarily a bad thing – we have designed our strategy to take advantage of exactly this type of movement – it just means we are never quite sure when our entries will validate. Action overnight and throughout the Asian session saw exactly this type of movement, and we are finally able to reevaluate our predefined parameters. So, with this said, and as we head into the second half of today’s European session, here’s what we are looking at in the bitcoin price this afternoon, alongside a quick evaluation of what happened overnight.
As the chart shows, having broke through in term support yesterday evening, we quickly ran down to hit our downside target at 317 flat. From this level, we traded flat for a while, then shortly before lunchtime GMT we got a jump straight back through our range and reached fresh highs at 326.53. This level now serves as in term support, while in term resistance comes in at 323.52, yesterday’s swing high.
If we break above in term resistance it will put us in a long entry towards 330 flat. A relatively tight trade this one, so a similarly tight stop is necessary – somewhere around current levels at 325 flat should do the trick.
Looking the other way, and assuming we break back to the downside, if we get a close below in term support at 323.52 it will put us short (on a close below this level) towards a downside target of 320.39. Again a stop loss is required, and somewhere around 324.50 will work nicely.
Charts courtesy of Trading View