Towards the end of last week we published our twice-daily bitcoin price piece with a specific focus on how the bitcoin price had ranged relatively tightly throughout the majority of the week and that we had altered our strategy is likely to incorporate this action. Now, the BTCUSD has matured over the weekend, and we are heading into a fresh week of trading. As our strategy altered, how was action performed over the weekend, and what are the levels that we will be looking at in the bitcoin price over the coming few days? Take a quick look at the chart.
As the chart shows, action over the weekend pretty much mirrored that which we saw to the week, in the sense that we ranged between pretty tight parameters. While the chart does not display this perfectly, a look at the numbers long right-hand side will reveal that we stuck within a range of about five dollars during the whole 48 hours’ trading. The levels were watching now are in term support at 223.59 and resistance 225.48. We will use the levels to infer bias throughout the day.
If we get a break above 225.48, it would validate an initial run up towards 226.81, with a medium-term target of 227.34 – weekend highs. A stop just below 225.48 (somewhere around current levels – 225 flat) will take several trade in the event that we turned back into the current range.
Conversely, if we can bounce from current levels we will look to enter to the downside of aggressive short-term range trade towards 223.59, with a stop at 226 flat. A further break below 223.59 would validate 222.04 longer-term, with a stop on the second entry around 224 flat ensuring we are taken out of the trade in the event of a bias reversal.
Charts courtesy of Trading View