Earlier this morning we published a piece highlighting the overnight action in the bitcoin price, and offering up our predictions as far as what levels we should be watching, and what the reaching of these levels would infer about the likely future direction of the bitcoin price as we mature to through the European session. Now, as the European session draws to a close, what has action today told us about the bitcoin price, and what should we be looking at as we head into both the US afternoon and overnight in Europe? Take a quick look at the chart.
As the chart shows, the BTCUSD has held between the range we outlined earlier this morning, with in term support at 244.81 and resistance at 248 flat. Once again, these are the levels we will be watching as we move forward. There are a few options as far as a trade is concerned. We could enter an aggressive short trade at current levels, based on the presumption that in term resistance at 248 flat is likely to hold and we get a run back down towards in term support at 244. With this trade, a stop loss just above resistance (somewhere around 249 flat) would give us a nice risk reward profile.
If resistance doesn’t holds, we could enter on its break, with an initial target of 250 to the upside. A stop loss just below 248 flat would take as out of the trade in the event of a bias reversal. Finally, we could wait until we trade down to in term support at 244.81, and watch action around this level. The overarching momentum has been to the downside recently, and this latter position would be an entry on the break of support with an initial downside target of 241.58 and a stop loss somewhere around 245.50.
Charts courtesy of Trading View