Anyone with a decent level of Bitcoin holding at the moment is likely to say they have had a pretty good week. From lows just ahead of $430 as the weekend closed, Bitcoin rose to highs just shy of $460 this morning—gains of around 7% in less than 48 hours. Whether these gains will continue remains to be seen; the Bitcoin price can be extremely volatile and is subject to fluctuations, meaning we could see a sharp reversal.
However, whichever way price takes us next, we intend to be ready to take advantage through the incorporation of our intraday breakout strategy. So, with this said, and as we head into a fresh day’s trading, what are we looking at in today’s Bitcoin market, and where will we look to get in and out of the markets in the event that we get a continuation of the volatility? Take a quick look at the chart to get an idea of our key levels.
As the chart shows, the levels we are looking at today are in term support at $447.16 and in term resistance at $456.54. We broke through yesterday evening’s in term resistance early this morning and got long towards $455 flat overnight. This trade closed out a little earlier today, and we have shifted broken resistance up to accommodate the overnight action.
We will initially look for a break above in term resistance to validate a medium term upside entry (on a close above this level) towards an upside target of $462. A stop on this one somewhere in the region of current levels—$454, or so—keeps things attractive from a risk management perspective.
Looking the other way, a close below in term support puts us short towards a slightly longer-term target of $437 flat, with a stop around $450 defining our risk.
Charts courtesy of Trading View