One thing we noticed on a number of occasions across the last few months, is the tendency for the weekly price to slow down towards the end of the week [Thursday, Friday] and then pick up some momentum over the weekend. This usually results in some large gains [ although we have seen a couple of losses], and rightly occurs as a result of a volume surge out of Asia. Action has now matured over the weekend, and as we head into a fresh week’s worth of trading in the bitcoin price, what did the weekends movement tell us, and how can interpret it as far as setting up against this week’s action is concerned? Specifically, where are we looking to get in and out of the markets according to our breakout strategy as we head into a fresh European morning session today? As ever, to get an idea of the levels that we are watching, take a quick look at the chart below. It’s a 15-minute candlestick chart, which shows action across the weekend and early this morning.
As the chart shows, price locked some pretty solid gains over the weekend, and spiked to carve out fresh monthly highs just ahead of 470 flat. Today’s range, therefore, is defined by support at 452 to the downside, and to the upside, 465 flat. This is a wider range than we have traded recently, and so we will be able to bring both our breakout strategy and our intrarange strategy into play. For the latter, long at support and short at resistance, with a stop just the other side of the entry to define risk.
For the breakout approach, a close above resistance will signal a bullish trade towards an initial upside target of 472, with a stop at 461 to define risk.
A close below support will signal short towards 444. Again a stop is necessary, and somewhere in the region of 456 looks good.
Charts courtesy of Trading View
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