At the end of last week, we published the second of our twice daily bitcoin price watch pieces. The main premise of the piece was that we had seen quite a lot of upside momentum and that there was every chance that we would see some selling pressure, as speculators took profits and price consolidated. Action has now matured over the weekend, and our thesis proved valid – with the bitcoin price reaching just shy of 462 flat and then correcting towards intraday lows of 425.43. From this level we have bounced a little, but still remain down on the overarching bullish momentum of last week. With this said, and as we head into a fresh week’s worth of trading, what are the levels we are looking at in the markets today, and where are we looking to get in and out of the markets according to our intraday strategy? First up, take a quick look at the chart to get an idea of today’s range.
As the chart shows, the two levels we are looking at for today’s session are in term support at 425.43 and in term resistance at 441.72. These are the levels that define today’s range, and are the levels around which we will look to base our entries.
So, first up, let’s consider the upside. If we can break above in term resistance, we will look to enter a long position towards an initial upside target of 454.09. On this one, a stop somewhere in the region of 438 flat would keep things attractive from a risk management perspective.
Looking the other way, a close below in term support would put is in a short position towards 420 flat. Again a stop loss is required, and 428 looks valid on this one.
Charts courtesy of Trading Viewby