At the close of the week on Friday, we noted that we often see a big move during the weekend, and that this move more often than not comes on a Sunday. As things turned out, we did get a decent move, but it came late Friday night rather than Sunday. The chart below illustrates the move – an upside break through the level we had slated as in term resistance at around midnight on the Friday in question, which brought the bitcoin price to trade at fresh highs of 420 flat. From this level price corrected, and has been trading at or within a pretty tight range since – a range that we will incorporate into today’s trading.
So, with this said, and as we head into a fresh European session today, what are the levels we are looking at in the bitcoin price on Monday, and where will we look to get in and out of the markets according to our intraday strategy? To get an idea of what’s on, and to see the aforementioned range, take a quick look at the chart below. It’s a fifteen-minute candlestick chart showing the weekend, and this morning’s action in the bitcoin price.
As the chart shows, the levels we are focusing on today are in term support to the downside at 417 flat and in term resistance to the upside at 420 flat. The range is too tight for intrarange, so we’ll be focusing purely on breakout this morning. Here’s how.
A close above in term resistance signals a long entry towards an immediate upside target of 425 flat, with a stop loss somewhere in the region of 418.5 defining the risk on the trade. Conversely, a close below support will put us short towards 411, and a stop at 419 protects our downside on the position.
Charts courtesy of Trading View