Action in the Bitcoin price has not disappointed this week, with a whole raft of volatility translating to some great potential entry points in the markets. We have drawn profit from both the upside and the downside, and had our fair share of stop hits, but across the week have managed to draw a net profit from our operations.
However, as we have seen over the weekends from the last few months, action on Saturday and Sunday can follow a completely different pattern than the Bitcoin price action we see in the week. Whether this is because the weekend translates to a reduction in volume—or whether it is just a case of different speculators incorporating different strategies—is unclear. One this is clear, however: our breakout strategy is well-equipped to absorb any differentiation in activity, and that regardless of the drivers behind price action, we can scalp for profits on any volatility.
So, with this said, and as we head into a fresh weekend’s trading in the market, what are the levels we are watching in the market this evening, and where will we look to get in and out of the markets in the event that we get the volatility we are looking for? Take a quick look at the chart below to get an idea of what we’re watching.
As the chart shows, we slightly broke through in term resistance earlier today, which put us in a long trade towards our predefined upside target. However, a quick reversal has taken out our stop, and we are now trading within this morning’s predefined range. As such, we will be watching the same parameters heading into this evening’s session as we identified this morning: in term support at $424.23 and resistance at $434.95.
A long entry on a break of resistance towards $445 flat—with a stop at $430 flat—gives us a nice bullish position. Conversely, we go short on a break of support towards $407.55, with a stop at $416 flat.
Charts courtesy of Trading View
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