Bitcoin Price Continues Trend Downwards; Reprieve This Evening?

Earlier on this morning, we published our twice-daily bitcoin price watch piece. In the piece we highlighted the levels that we would be watching throughout today’s European session, and suggested how we might respond to bitcoin price reaching or breaking these levels as far as getting in according to our intraday breakout strategy was concerned. Now action has matured throughout the day, what are the levels that we are keeping an eye on in the bitcoin price this evening, and did we manage to draw any profit from the markets today, or did action stop us from getting in and out as we would have liked? Take a quick look at the chart.

As the chart shows, having reached intraday highs of 260.79 earlier on this morning (the level that we had slated as in term resistance in this morning’s piece) we have failed to garner any real upside momentum, and have since declined initially towards today’s in term support just ahead of where this level now lies, and – subsequent to a corrective upside bounce – back down to what we are now looking at as in term support at 253.18. These two levels – 260.79 and 253.18 are going to be the ones that we watch as we head into the Asian session tonight.

The current momentum is to the downside, so let’s address a bearish trade first. If we can get a break below 253.18, it would validate a short-term entry towards 250 flat, with a stop loss somewhere around current levels (254 flat) maintaining a tight risk profile on the trade but hopefully leaving us enough room to survive a quick chopped to return within range.

If we can get a bounce from current levels, a long entry towards in term resistance at 260.79 might be a nice aggressive intra-range trade. A stop loss somewhere around 251 flat will make the trade attractive from a risk management perspective. Subsequent to this, if we can get a break above 260.79, we will look to enter long towards a longer-term target of 268 flat.

Charts courtesy of Trading View