Throughout last week, we published a bitcoin price watch pieces twice a day in order to try and apply some sort of framework to the volatility we were seeing. However, as it turned out, the framework we applied was little to expansive when looked at in relation to the action that presented itself, and we ended up not being able to get in and out of the markets very often. Accordingly, we alter our strategy slightly towards the end of the week and incorporated an intro range strategy – from which we can take advantage of slightly smaller and tighter movements in the bitcoin price during the day. Now, as we head into a fresh week’s trading, were going to look to incorporate both this strategy and a breakout strategy to try and draw profit from the market on any action we see this week. So, with this said, what are the levels that we are keeping an eye on today, and where can we look to get in and out of the markets on any movement? Take a quick look at the chart.
As the chart shows, in term support for today since 254.01 (weekend lows) and resistance at 259.45 – just above today’s highs. We got quite a steep decline of the week in, and this brought bitcoin price to trade within the 250 – 260 range for the first time a few months, but it doesn’t mean that we won’t get any action this week. We will initially look for a break above 259.45 to validate a short-term target of 262.20 to the upside. Alternatively, if we corrected from in term resistance, we will go short towards 254.01. Looking at that level now, a break below would bring 250 flat into play medium-term, while a bounce from this level would put us long towards in term resistance with a stop loss somewhere around 252 helping us to maintain a positive risk reward profile on the trade.
Charts courtesy of Trading View
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