Throughout the majority of last week, we saw a sustained decline in the bitcoin price coupled with the odd correction and temporary range bound action. Now the bitcoin price has matured over the weekend, with a fresh set of key levels that we are going to keep an eye on as we head into a new week’s trading. What happened over the last 48 hours, what’s likely to happen today, and what are the primary levels we are watching as an inference of our intraday bias? Take a quick look at the chart.
As the chart shows, we saw a bit of volatility over the weekend, but the overarching trend was sideways. Price has ranged between in term support at 234.96 and resistance at 237.77 for the past 24 hours or so, and these are the levels we will use to form our intraday bias.
Looking to the downside, if we get a break below 234.96 it will offer up a temporary bearish bias and validate long-term support at 232.99 as an initial downside target. As usual, we will place a stop loss to ensure that we are taken out of the trade in the event of a bias reversal, so with the described entry a stop somewhere around 235.50 would present us with an attractive risk reward profile.
Looking the other way, if we bounce from current levels, we will look for a long trade towards 237.77 as an aggressive entry, with a stop around 234.50. A more conservative entry would be to wait for a break of 237.77, and target an initial upside goal of 239.41. In this trade, a stop loss just ahead of 237 flat would keep risk tight.
Charts courtesy of Trading View