At the end of last week, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted a few of the key levels that we would be keeping an eye on in the bitcoin price over the weekend, and suggested how we would respond to price breaking or reaching these levels as far as entering on our intraday scalp strategy was concerned. Now action has matured over the weekend and we have seen quite a lot of volatility so, with this said, what are we watching today, and how might we draw profit from the market throughout the European session? Take a quick look at the chart.
As you can see, and as aforementioned, action over the weekend was quite volatile, and we have seen price range between what now serves as in term support at 241.06 and resistance at 244.59. These are the levels to watch today. We are currently trading closer to resistance, so we will look at our upside potential first. If we can get a run towards 244.59 and a break above this level on an intraday basis, it would validate an upside entry with an initial bullish target of 250 flat. On this trade, a stop loss somewhere around 243 flat will maintain a positive risk reward profile while leaving enough room for us to withstand some choppy action.
Looking the other way, if we do run towards 241.06 (in term support) a close below this level will put us short towards 236 flat initially. Once again, a stop loss somewhere around 242 flat will ensure that we are taken out of the trade in the event that we return to range within our predefined levels.
Our predefined range is likely a little too tight to try and get in on an intra range entry today, but if things loosen up by this afternoon we will amend our strategy to accommodate.
Charts courtesy of Trading View