Last night we published our twice-daily bitcoin price watch piece, and dedicated a large portion of it to the suggestion that the bitcoin price had stabilized somewhat over the past couple weeks, and – as a result – the number of opportunities for entry and exit had subsided. We further suggested that as we entered the Asian session on Thursday evening, and beyond that, approached a fresh European session on Friday morning, we may see some volatility based on any number of fundamental drivers. As it happens, we did get some action overnight, and we have finally broken out of the range we have been looking at for at least the past three or four days. With this said, what are the levels that we are watching today in the bitcoin price, and how can we get in and out according to our intraday strategy to take advantage of the volatility we are currently experiencing. Take a quick look at the chart.
As you see, about an hour and a half before market open in Europe, we broke through in term resistance at 278.55, and quickly ran up to what now serves as fresh in term resistance at 280.72. The former of these levels has switched to bring us in term support today. These are the two levels that we will be keeping an eye on during today’s session. With the current momentum to the upside, we will look for a break of in term resistance at 208.72 to validate a medium-term upside target of 285 flat. On this trade, a stop loss somewhere around 279 flat will help us to maintain a positive risk reward profile and leave plenty of room for us to return to trade within range without being chopped out of the trade.
Looking the other way, a break below 278 would present us with a short-term bearish bias, and bring 276 flat into play short-term.
Charts courtesy of Trading View