Its been a big week for the bitcoin price. Action has been overwhelmingly to the upside, and a continuous stream of breakout trades has brought us to trade just ahead of 10 week highs. With a continuation of this strength, and a final push over the coming few days, we could reach 300 flat, and if we do, we will no doubt get some collateral strength as faith across the bitcoin market and the bitcoin price is restored, at least to some extent. The last few weekends, and in particular Sundays, have brought with them boosts of ten dollars or more, so if we can get a bit of strength today heading into the weekend, such a target is not unrealistic. Having said this, we will keep things a little nearer term for todays European session, and head in with our breakout strategy on the most recent swing highs. So, here are the levels we are looking to enter at today, alongside the risk management parameters that will define our entries. Take a quick look at the chart.
As you can see, the levels we are looking at are in term support at 273.01 and resistance at 280 flat. These are the parameters that define today’s range.
We will initially look for a run up towards in term resistance (as this falls in line with recent overarching momentum, and then look for a close above this level to put us in a medium term long entry towards 285 flat. A stop loss on this one somewhere around current levels (277) will ensure we maintain a positive risk reward profile on the position.
If we see some bearish momentum ahead of any run-up, we could look to enter on a short term downside scalp at a break of 273.01. Again a stop loss is necessary on this one – somewhere around 275 flat should do the trick.
Charts courtesy of Trading View