As noted in yesterday’s analysis, we got a big move over the weekend – one that served to offer up fresh highs in the bitcoin price on Sunday. More often than not, successive to a large move like this, action in the bitcoin price will lay relatively flat for 24 hours, as markets regroup and consolidate, with buyers and sellers rehashing their pre-move bias. We did get a bit of movement throughout the Monday European session, and also throughout last night’s Asian session, but nothing compared to what we saw over the weekend, and when considered in the grand scheme of things, this movement looks to be tight and – in turn – representative of the aforementioned consolidation. The question now, is what does all this mean for today?
Well, we’ve had a large move, followed by 24 hours of so of range bound, sideways trading. Chances are, therefore, we will see a break of this range today, as the consolidation wears thin and one side of the market gains traction over the other. It’s tough to say exactly which side (buy or sell) this will be, but our breakout strategy should help us to pick up a position on the right side, if and when we get some volatility.
So, as ever, get a quick look at the chart to see what we are focusing on for this morning’s European session.
As the chart shows, we’ve got today’s range as defined by in term support at 420.50, and in term resistance at 424.5. There’s the possibility of an intrarange scalp entry here – long at support and short at resistance – assuming a tight stop is used just the other side of the level in question.
From a breakout perspective, long on a close above resistance with a target of 430 and a stop at 422.5. Short on a close below support, targeting 415 flat and using a stop at 422 flat to define our upside risk on the position.
Happy trading!
Charts courtesy of Trading View