Yesterday was Memorial Day in the US, and we had public holidays across Europe and the UK. However, a break in the traditional finance industry did very little to affect buyers and sellers of bitcoin, and we saw a considerable amount of volatility in the BTCUSD throughout the day. Our scalp strategy paid off on a couple of occasions, and we drew profit from the markets on both long and short breakouts. Now, as we head into a fresh day’s trading, what are the levels we are keeping an eye on, and will yesterday’s volatility transfer through to today’s session? Take a quick look at the chart.
As the chart shows, after yesterday’s sharp decline through in term support at 237.10, the bitcoin price has traded relatively flat for 24 hours or so. Overnight last night, and as we head into this morning, the levels that we are keeping an eye on our 234 flat to the downside (in term support) and 237.10 to the upside (now serving as in term resistance post break).
We are currently trading just shy of in term resistance, so we will initially look for a break above this level to validate an upside bias, with a primary bullish target of 240 flat. A stop loss somewhere around 235.50 will maintain our positive risk reward profile on the trade.
Looking the other way, if current levels hold as resistance and we get a run down to 234 flat, we will look for a break below this level to offer us a bearish medium term bias. If we close below it, we will enter short towards 230, with a stop loss – once again – somewhere around 235.5 that will take us out of the trade in the event that we return to trade within range post break.
Charts courtesy of Trading View