In this morning’s bitcoin price watch article, we highlighted the overnight action as a potential indication that we would see some extended volatility across today’s European session. We outlined the levels we were going to focus on, and suggested a few risk management parameters. Action has now matured throughout the session, and as we head into tonight’s Asian session and beyond, what are we looking at in the bitcoin price going forward, and where will we look to get in and out of the markets if price action affords us the opportunity? As ever, take a glance at the chart before we get going to get an idea of our key levels.
As you can see, the levels we are looking at this evening are in term support at 367.09 and resistance at 382.89. Resistance remains unchanged on this morning’s analysis, while support has shifted to the downside as a response to today’s movements. We actually got into a short trade on the downside break, but returned to trade mid range shortly after our entry and – as such – were taken out on a stop hit.
This evening, we will look for a break below in term support (and a close below this level) to put us in a second short trade of the day towards a revised downside target of 356.36. On this one, a stop somewhere in the region of 370 flat will keep things attractive from a risk management perspective.
Looking the other way, and if we get a return to the overarching bullish momentum we saw over the weekend, we will look to enter long on a break of in term resistance with an initial upside target of 390. We’ve got a bit of room to play with here, so a stop around 379 looks good.
Charts courtesy of Trading View