Global asset markets are currently being dominated by what’s going on in the Eurozone and – more specifically – Greece. For the past few months there has been non-stop debate between the people, its government and EU leadership as to Greece’s position in Europe, both current and future. In the equities markets, this has translated to some uncertainty, and – as a result – we have seen a reallocation from the high-risk assets to what are generally considered risk off assets – primarily gold and silver. However, as a side product of this reallocation, we have also see some upside movement in the bitcoin price. Over the weekend we broke $300 for the first time since a spike up in January, and – while we are now trading below this level – the break offers us a medium-term bullish outcome for the bitcoin price going forward. So, with this said, what are the levels that we are watching today according to our breakout strategy, and how will we be looking to get in and out of the markets take advantage of the fundamentally driven volatility? Take a quick look at the chart.
At the chart shows, the initial run came during Sunday’s European session, and we peeked out at just short of $320 before reversing, and correcting pretty steeply to the floor of 281.39. From this level, we bounced to currently trade about $290 flat. In term support lies at the aforementioned 281.39, while in term resistance during today’s session since 295.09. As mentioned, our primary bias is to the upside today, so we will try to limit our entries to bullish positions. With this in mind, we will look for a break above 295.09 put us long towards an initial upside target of 307.28. Bear in mind that we may well see some resistance around 300 flat, but hopefully we can break above to reach our target. On this trade, a stop loss somewhere around 292 will maintain a great risk reward profile.
Charts courtesy of Trading View