It seems the bitcoin price is determined to give away some of the gains we saw in July, this month. We have noted 285 as a key resistance level a number of times this week already, and – having reached it and corrected from it two or three times on Monday/Tuesday, it now looks like we are in for some downside momentum before we reach it again. The bitcoin price declined throughout the majority of yesterday’s session, and looks to have declined throughout the Asian session on Wednesday evening, so, as we head into Thursday, are overarching bias must be to the downside. With this said, what are the levels we are looking at in the bitcoin price during today’s Thursday European session, and where will we look to get in and out of the markets according to our intraday breakout strategy? Take a quick look at the chart.
As you see, price declined from aforementioned resistance at 285.85 (now weekly highs) to intraday and weekly lows at 278.61. The latter of these two levels gives us in term support for today session. In term resistance today sits at 281.65. These are the two levels that we will be watching as we move forward today. First, we will look for a break below 278.61 to validate a medium-term bearish bias and put us short towards 285 flat. Not too much room for reward here, so quite a tight stop loss is warranted. Somewhere around 279.5 looks attractive from a risk management perspective.
Looking the other way, a break above 281.65 would put us long again towards 285.85. We are desperately looking for a break above this level this week to try and validate 290 flat longer-term, so the latter of these two scenarios is the favorable from our perspective.
Charts courtesy of Trading View