Throughout the majority of last week, we saw the bitcoin price trend to the downside, with temporary upside corrections on short-term volatility. Now, over the weekend, we have seen some of this downside momentum abate, and a little bit of bullish action in the bitcoin price brings us to trade slightly higher than when we finished the week last week. This said, and as we head into a fresh week of trading, what are the levels that we will be looking to get in around according to our breakout strategy today, and where will be looking to draw profit from the market on any future volatility? Take a look at the chart.
As the chart shows, action over the weekend has brought us to trade mid-range between the levels that now serve in term support at 247.03 and resistance at 252.03. This five dollar range defined by the aforementioned parameters is what will be keeping an eye on during today’s session.
If we get a break above 252.03, it would present us with an initial upside bias, and put us long towards a medium-term upside target of 255 flat. On this trade, a stop loss somewhere around current levels (around 250 will do nicely) would take us out of the trade in the event of a bias reversal and maintain a positive risk reward profile on the trade.
Looking the other way, if the downside momentum returns, and we get a break of in term support at 247.03, we will look to enter short towards an initial downside target of 243.41 – lows seen towards the end of last week. Once again, on this trade, a stop loss somewhere around 249 flat will help us maintain a positive risk reward profile while keeping the entry attractive from a risk management perspective.
Charts courtesy of Trading View