That we will get a solid and sustained intraday move in the bitcoin price over the weekend – and more often than not, on Sunday – is becoming something of a standard assumption as late. Generally, it comes as the markets in Asia open for a fresh week, and a bump up in volume initiates a concurrent bump in volatility. This week was no exception, and as markets opened in Asia last night (or a little before if we’re to be exact), the bitcoin price gained to reach fresh weekly highs at 428 flat.
Since this high, we’ve seen price correct somewhat, and while we still remain above where we closed out last week, the general overarching trend looks to be to the downside – at lease from an intraday, near term perspective. The chart below shows this trend, highlighted by the downwards sloping channel (red). Price sits just shy of the upper trend line as things stand, so we may see some immediate downside as this line holds and price runs towards the lower line at market open.
With this in mid, how are we looking to approach today’s markets from an intraday breakout perspective? As ever, get a quick look at the chart to see both the aforementioned channel and our key levels for the morning session.
As the chart shows, we’ve got in term support at 421.56 and in term resistance at 424.80. These are the levels to watch as we head into this morning’s session.
We’re going to trade our standard breakout strategy, so a break above in term resistance will validate a long entry towards aforementioned highs at 428 flat. A stop on this one at 423 flat defines our risk profile.
Looking the other way, a close below in term support will signal short towards 415 flat. A stop on this one at 423.5 keeps things tight.
Charts courtesy of Trading View