It goes without saying that next couple of days could be extremely volatile across all financial markets. There are those that claim that the bitcoin price has relatively little to do with the price of wider asset markets, but on the eve of the US interest rate hike, this is one occasion no such claim can be made. The hope is that a US rate hike will translate to risk off sentiment in the markets, and in turn, lead people to seeking safe havens such as gold (and potentially bitcoin). Obviously, there is also an argument to be made that maintaining current rates will also translate to risk off sentiment – primarily as a result of the suggestion of quantitative easing for that will likely come about if policy remains loose. Regardless of what happens, for the next couple of days we will be keeping things quite tight as far as our key levels are concerned. So, with this said, what are we watching today, and where are we going to look to get in and out of the markets according to our intraday strategy? Take a look at the chart.
As you see, our in term support lies at 228.1 one for today session, and in term resistance at 230.48. These two levels define today’s range. We are currently trading mid-range, but have had some pretty up-and-down action over the past few hours, so mid-range doesn’t really mean much at the moment. If we can break above 230.48 it will put us long towards an upside target of 232.92 initially. A stop loss somewhere around current levels (229.8) will keep things attractive from a risk management perspective on the trade.
Looking the other way, if we break below 228.11, and close below this level on an intraday basis, it will put us short towards 225.14. Again, and with specific reference to the volatility we are likely to see over the next 48 hours, a stop loss is required on this one. Somewhere around 229.5 should do the trick.
Charts courtesy of Trading View