As we head into a fresh week’s trading in the bitcoin price, what are the levels we are watching, and where are we looking to get in and out of the markets according to our intraday strategy? Further, how did action over the weekend play out in response to our predefined strategy? Take a quick look at the chart to see what we are looking at today.
As the chart shows, the two key levels for today’s session are in term support at 320.39 to the downside, and in term resistance at 325.40 to the upside. These will be the levels that define our entries during today’s European session, and potentially beyond and into the Asian session this evening if the bitcoin price fails to breach them today.
We will primarily use our breakout strategy, so we will look for a break above resistance, and a close above that level on the intraday chart, to validate a medium term upside entry towards an initial target of 330 flat. With just shy of five dollars’ worth of reward on offer, a stop loss somewhere in the region of current levels – 323.5 – should ensure we are taken out of the trade in the event of a bias reversal, while still leaving us enough room to avoid being chopped out on a temporary turnaround.
Looking the other way, a close below in term support would bring 315 into play to the downside. Again, we’ve got about five dollars’ reward to play with here, and so a stop around 322.5 will work nicely from a risk management perspective.
As mentioned, we are going to stick with our breakout strategy today, as the range in focus is a little too tight to try and trade on an intrarange basis. For a more aggressive entry, however, and for those looking to do so, long at support and short at resistance would be a nice scalp position, with a stop just the other side of entry defining risk.
Charts courtesy of Trading View