On Friday afternoon, shortly before the markets closed in Europe for the weekend, we published our twice-daily bitcoin price watch piece. In the piece we highlighted the levels that we would be watching throughout the weekend, and suggested how we might respond to the bitcoin price reaching or breaking these levels as far as getting in according to our intraday scalp strategy was concerned. Now action has matured over the weekend, what are the levels that we are watching as we head into a fresh week of trading? Further, did we manage to get in and out of the market according to our intraday bias on Saturday or Sunday? Take a quick look at the chart.
As you can see, action throughout Sunday daytime and Sunday evening’s session has been pretty volatile. We ranged up and down between a pretty tightly defined parameter, but – and what this affords us – we can now implement something of an intraday intra-range strategy going forward. With this said, in term support sits at 274.61, while in term resistance sits at 278.10. These are the levels that we will be watching as we head into today’s session.
We will initially look for a break above 278.10 to validate a medium-term upside target of 282 flat. However, if we get a bounce and correction down from 278.10, it will give us the opportunity to enter short towards in term support, with a short-term target of in term support at 274.61. On this trade, a stop loss just above in term resistance will help us maintain a positive risk to reward profile.
The same concept applies to the downside, but in reverse. If we test support and it holds firm, we will look for a long entry towards in term resistance, with a stop loss somewhere around 272 flat keeping things attractive from a risk management perspective.
Charts courtesy of Trading View