At the end of last week, we reported that we had seen quite a lot of volatility in the bitcoin price, and that – as a result – we were switching our strategy from an intra-range to a breakout. Over the weekend, we’ve seen more of this volatility, and as such our strategy going into today’s session is unchanged. With this said, the parameters that we are looking at are slightly different from those which we were keeping an eye on on Friday. So, moving forward, what are the levels that we are watching during today’s session, and where can we look to get in and out markets according to our intraday strategy? Take a quick look at the chart.
As you see, as part of the weekend’s volatility, there has been an overarching decline in the bitcoin price. Whether this decline will continue today remains to be seen, but as far as short-term action is concerned, the levels we are watching are 224.39 as in term support and 229.49 as in term resistance. This five dollar range gives us today’s parameters.
We will initially look for a break below 224.39 to validate a medium-term bearish entry towards 220 as an downside target. On this trade, a stop loss somewhere around 225.5 will help us to maintain a positive risk reward profile.
Looking the other way, if we can break above in term resistance at 229.49, it will signal entry and put us in long towards 232.75 as short-term upside target. Once again a stop loss is necessary on this one, so somewhere around 228 should do the trick.
Charts courtesy of Trading View