In this morning’s bitcoin price watch piece, we highlighted a few of the levels we were keeping an eye on as, and suggested how we would react to price reaching these levels as far as entering a trade was concerned. Now price action has matured throughout the European session, what are we looking at in the bitcoin price as we head into the weekend? Take a quick look at the chart.
As the chart shows, very little has happened since this morning as far as price action is concerned. Our range holds, with 235.10 now acting as in term support and 239.68 – yesterday’s high – offering us a reasonable level of in term resistance. These are the two levels that we are keeping an eye on as we head into Friday evening and beyond.
We will look for a break above 239.68 (in term resistance) and a close above this level on an intraday basis to validate an upside entry. A target at 244.07 offers us a nice reward profile, while a stop around 237.5 keeps risk tight in the event that price turns around and we get break back to trade within the range.
Looking the other way, if resistance holds, and we get a run back down towards 235.10 (in term support), we will look for a break below this level to signal a short entry towards an initial downside target of yesterday’s lows at 232.24. Once again, we will place a stop within the range to ensure that we are taken out of the trade in the event of a bias reversal – somewhere in the region of 236.5 would keep things loose enough for us to avoid being chopped out if we get some short-term bullish momentum, while also maintaining a positive risk reward profile on the trade.
Charts courtesy of Trading View