Earlier this morning we published our twice-daily bitcoin price watch analysis piece. In the piece, we highlighted the levels that we would be keeping an eye on in the bitcoin price throughout Friday’s European session, and suggested the response we would take to price reaching or breaking these levels as far as entering according to our intraday scalp and breakout strategy was concerned. As you will see shortly, action throughout today’s session has been pretty lacklustre, and has remained to trade within the range that we outlined this morning. So, with this said, what are the levels that we mentioned this morning, and how can we get into a trade if we get a break out of these levels during the weekend? Take a quick look at the chart below.
As you can see from the chart, and as we have already mentioned, we are currently trading mid-range between 240 flat – a level that serves as in term support as we head into this evening – and 242.89 – the level that will serve as in term resistance concurrently. These are the levels that we will be watching over the weekend. We will first look for a break below in term support (purely because we are currently trading close to this level) to validate a medium-term bearish bias. On such a bias, we will enter a trade towards 238 flat as an initial downside target, with a stop loss at 241 flat helping us to maintain a positive risk to reward profile on the trade.
If we get a bounce from current levels, and manage to reach 242.89, we will look for a break above this level to present us with a medium-term bullish bias heading into the weekend. A target of 245 flat would give us about two dollars’ worth of reward, so a stop loss somewhere around 242 flat (a little above current levels) will make for a nice trade from a risk management perspective.
Charts courtesy of Trading View