BUY BITCOIN
Action over the weekend in the bitcoin price has been pretty interesting, and it looks as though the week volatility we saw throughout the majority of last weak has abated and we have finally got some decent movement. With this said, we are still trading within a tight range, and the only real strategy available to us today according to our predefined parameters is our breakout strategy. Now, as we head into a fresh week of trading, what are the levels we are keeping an eye on the bitcoin price, and how can we get in to either a long or short position on any volatility? Take a quick look the chart.
As the chart shows, we are currently trading just shy of 231.19 – and this level will serve as in term resistance as we head into the European morning session. To the downside, 229.27 will serve as in term support medium-term.
If we get a break above 231.19, it would put us long towards an initial upside target of 232.5 – a tight trade that leaves us not much room for a stop loss, so a stop somewhere around 230.40 is necessary to maintain a positive risk reward profile.
Looking the other way, if we get a run down towards 229.27, we will look for a break below in term support to put us short towards an initial downside target of 227.99. Again, not much room for a stop loss, but 230 flat should do the job. If we can break below 227.99, it could suggest further downside momentum, and we will look to enter a secondary short trade towards 225 flat, with a stop somewhere around 228.80 ensuring that we are taken out of the trade in the event of a bias reversal. That’s how we can get a bit more action this week than we did last.
Charts courtesy of Trading View
