Yet again, we’ve had a busy weekend in the bitcoin price. Action never fails to disappoint across the Saturday and Sunday sessions, and these last couple of days were no exception. We hit fresh highs at 468 flat, before steeply correcting towards weekend lows just ahead of 400 flat, but have since gained strength and recovered somewhat. We are currently trading just shy of 442 – a level that has offered up some resistance in the past – and it looks as though we are in for some further volatility today. So, with this said, and as we head into a fresh week’s trading, what are the levels that we are watching in today’s bitcoin price, and where are we looking to get in and out of the markets on the back of any volatility? As always, take a quick look at the chart below to get an idea of our Monday parameters.
As the chart shows, today’s action is defined by in term support at 428.39, and in term resistance at 442.88. These two levels define today’s range. We are going to use both our intrarange strategy and our breakout strategy, as our range gives us about fifteen dollars width to play with.
From a breakout perspective, we will initially look for a break above in term resistance (the overarching momentum suggests this is the most likely trade) to signal a long position (on a close above this level) towards an initial upside target of 450 flat. On this one, a stop somewhere in the region of 440 flat will help us to maintain a positive risk reward profile.
Looking the other way, a close below in term support will put us short towards 417.97. This is a slightly wider reward parameter, so a wider stop is available – somewhere in the region of 432 works nicely.
Intrarange – long at support and short at resistance with a stop just the other side of our entry.
Charts courtesy of Trading View.