As we discussed in a little bit more detail in this morning’s bitcoin price watch piece, action over the next few days is likely to be considerably more volatile than it has been of late. This doesn’ just apply to the bitcoin price however, but across the majority of the financial asset markets. Why? Because the Federal Reserve is set to ive guidance on its interest rate targets tomorrow afternoon, and the guidance has implications for the majority of global economies. What we are hoping is that a shift to risk off sentiment might inject some upside volatility in to bitcoin, and help it gain some strength throughout the US session. Of course, this is far from guaranteed, and as such, we need to make sure we set up on either side of any potential action. So, with this said, here are the levels we are looking at heading into tonight’s Asian session, alongside where we will be looking to get out of the markets in the event that our intraday strategy puts us into a position.
As you can see from the chart, in term support for this evening sits at 225.59 – intraday lows when considering just the US session. In term resistance lies at our previous swing high – 228.87. These are going to be our entry defining parameters this evening.
We will initially look for a break above in term resistance at 228.87 to put us long towards a very tight scalp target of 230.50. On this trade, a stop somewhere around 228 flat will just about keep our risk management parameters positive.
Looking the other way, a break below support will put us short with a slightly longer term target of this mornings (European session) lows at 222.99. On this one, a stop loss around 226.50 should do the trick.
Charts courtesy of Trading View