Today is Memorial Day in the US, and UK markets also take a holiday, but this does not mean that we will be vacant of any volatility in the bitcoin price on Monday. In our twice-daily bitcoin price watch piece published on Friday evening, we highlighted a few key levels we are going to watch over the weekend, and suggested how we might enter on a breaking of these levels in order to draw a scalp profit from the market. Now action has matured, what are the levels that we are keeping an eye on today, and where will we be looking to enter? Take a quick look at the chart.
The fact that major markets are taking a day off is pretty evident from the chart, with the intraday candles fragmented and gap filled. However, this aside, the levels that we are going to be watching today are in term support at 238.02 and resistance at 240.04. We are currently trading just ahead of resistance, so our primary bias is to the downside.
If we get a break below 238.02, it would signal a short entry with an initial downside target of 235 flat. A stop loss somewhere around 238.80 will maintain a positive risk reward profile and ensuring taken out of the trade in the event of a bias reversal. Looking the other way, and if current levels hold, we will look for a break of 240.04 (in term resistance) to validate a long entry towards 241.65, with a stop loss somewhere around 239.40 defining our risk parameters.
If we can get a break above 241.65, it would suggest a longer-term reversal of our intraday bearish bias and – on such a break – we would enter long towards 245 with a stop somewhere around 241 flat keeping things tight on risk management side of things.
Charts Courtesy of Trading View