We are underway with a new week of trading in the bitcoin price right now and things are already moving pretty fast. Action over the weekend gave us plenty to trade, with price jumping around all over the place but, importantly, trending to the upside as part of some overarching momentum.
How things will play out today remain to be seen, but it looks as though we may get a short period of consolidation followed by a continuation of the bullish momentum that dominated the weekend.
So, with this in mind, and as we head into a fresh session today, let’s get some levels in place that we can use to try and draw a profit from the market as and when things mature during the European session. As ever, take a quick look at the chart below before we get started so as to get an idea of where things stand and where we are looking to jump in and out of the markets if and when things move. The chart is a one-minute candlestick chart and it has our range overlaid in green.
As the chart shows, the range we are looking at for today comes in as defined by support to the downside at 5829 and resistance to the upside at 5886. We are going to stick with our breakout strategy for the time being, so our trades for today look as follows:
- Trade one is a long trade on a close above resistance. We will target 5930 and we will have a stop loss on the position somewhere in the region of 5865 to ensure we are taken out of the trade in the event of a bias reversal.
- Trade two is a short entry on a close below support, with a target of 5780 and a stop loss at 5845.
Let’s see what happens.
Charts courtesy of Trading View