As far as Monday sessions go, this one is likely to be uneventful. The holidays in the US look set to dampen volume, and in turn, put a cap on any sustained momentum or volatility in the bitcoin price. This doesn’t mean we can’t turn a profit on action, just that we need to be little more opportunistic in our operations. Specifically, we’re going to tighten our range to two much tighter parameters that we have been doing over the last few weeks, in an attempt to get in and out on any short range action for quick scalp profits.
So, with that said, and as we head into a fresh week’s worth of training, here is what we are focusing on. As ever, get a quick look at the chart below so as you know which levels are important before we get into the details.
So, as the chart shows, today’s support level comes in at 666 to the downside, and our range is rounded off by resistance to the upside at 675. It’s a less than $10 range, so we won’t be playing any intrarange trades today. For the more aggressive trader, however, long at support and short at resistance with a stop loss just the other side of the entry-level to define risk.
Looking at our breakout strategy, if price closes above resistance, we will enter a long trade towards an immediate upside target of 680. It’s a tight one, and so a tight stop loss is necessary. Somewhere in the region of 672 should do the trick. Looking the other way, if price closes below support, it will signal a short entry towards an initial downside target of 660. We have got a little more room on this one, and a stop loss somewhere around 669 looks good from a risk management perspective.
Let’s see how things play out…
Charts courtesy of Trading View