The weekend is now over, and as expected (as we hypothesized on Friday) we saw quite a lot of volatility in the bitcoin price across the two-day period. We are now trading around 380 flat, having reached highs just ahead or 382 a little earlier this morning, giving us a jump in the region of $50 in a little of 24 hours. So, with this said, and as we head in to a fresh European session, what are the levels we are looking at today, are where will we look to get in and out of the markets in the event that we get a return to the volatility we saw over the last couple of days? As ever, take a quick look at the chart to get an idea of the levels in focus.
As the chart highlights, the levels we are looking at today are in term support at 371.98, and in term resistance just ahead of the aforementioned daily swing high at 382.89. These two levels outline today’s predefined range.
If we get a break above in term resistance ( and a close above this level on the intraday chart) it will put us in a long position towards an initial upside target of 395 flat. Beyond that we will look at 400, but keep in mind that this level will likely serve up some psychological resistance.
Looking to the downside, and if the overarching upside momentum reverses, we will look for a close below in term support to put us in a short entry with an initial downside target of 365 flat. This level was pertinent over the weekend, and we will be looking for a replication of this pertinence going forward. On this trade, a stop loss just the other side of our entry (somewhere around 366.5) will ensure we are taken out of the trade in the event of a bias reversal.
Charts courtesy of Trading View