Throughout the early part of yesterday’s European session, and in response to the overarching bullish momentum we have seen over the last few days, the bitcoin price gained strength to reach intraday highs of 383 flat. During the latter half of the session, however, and as we headed into Asia, bitcoin gave away much of the gained strength. Early today’s session, we’ve seen the bitcoin price collapse, losing just shy of $20 worth of strength in under 30 minutes. We are close to midway through the European session on Tuesday, and the bearish momentum looks set to continue. With this said, here are the levels we are looking at today.
As the chart shows, we have adapted our parameters to take the recent action into consideration. In light of this, we are now looking at in term support at 356.36, and in term resistance at 367.86. Given the current action, we will likely see a test of in term support before we do in term resistance, so let’s address our response to this testing first.
We will bring our breakout strategy into play, so if we get a close below in term support on the intraday chart, it will put us in a short position towards an initial downside target of 345 flat. With about $10 worth of reward on offer, we will be looking to cap off our risk at around $3-4. As such, a stop loss somewhere in the region of 360 flat should keep things attractive from a risk management perspective.
Looking the other way, if we get a close above in term resistance, we will look to enter long on an upside target towards 380 flat – the most recent swing high. A stop on this one around 364 defines our risk nicely.
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