At the end of last week, on Friday evening, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted a couple of the key levels that we would be keeping an eye on over the weekend, and suggested how we might respond to price reaching or breaking these levels as far as entering according to our scalp strategy was concerned. Now action has matured over the weekend, we’ve seen quite a lot of volatility in the bitcoin price so far this morning. What are we watching today, and how can we draw profit from the market according to our strategy? Take a quick look at the chart.
As the chart shows, we traded down to what now serves as in term support around 230.99 until about two hours ago, at which point we got a short-term boost towards 235 flat – a level that now serves as in term resistance as we head into the European session.
We are currently trading mid-range, but will look for a break above 235.012 put us long towards an immediate upside target of 239 flat. On the trade a stop loss around 234 flat will maintain a positive risk reward profile while leaving just enough room to avoid us being chopped out in the event that we return to trade temporarily within range.
Looking the other way, if we can get a break below 230.99, it will put us short with an initial downside target of 228.05. Once again, a well-placed stop loss will keep our risk reward parameters attractive, somewhere around 232.50 should do the trick.
If we can get a run up towards in term resistance, and a corrective bounce, an aggressive entry could be towards in term support, a short trade with a stop loss just above resistance, with the same being true in reverse for a bounce from support.
Charts courtesy of Trading View
