It’s Friday morning, and that means we’ve come to the penultimate of our twice-daily be quite bitcoin price watch pieces for the week. Despite having a pretty volatile weekend last week, price throughout the majority of this week has been pretty stable, having ranged between a relatively tight and constrained set of parameters to this point. Action overnight gave us a little bit to look at, however, and we now have a fresh and very tradable range heading into this morning’s session. So, as we get going, here are bitcoin price levels that we are focusing on for today’s session, and a look at how we are going to approach the bitcoin market heading into the weekend. As ever, take a quick look at the chart below to get an idea of the range in focus, and the targets and risk management parameters we are applying to today’s action.
As the chart shows, the range in question today is defined by 542 the downside (the most recent swing low) and 548 to the upside. With about a six-dollar range, there is plenty of room to bring an intrarange approach into play. With this in mind, long at support and short at resistance with a stop loss just the other side of the entry to define risk.
Looking at breakout, if bitcoin price closes above resistance to the upside, it will signal a long entry towards an initial upside target of 555. We need to make sure we exit the trade on a bias reversal (at least, that is, we get out in time to avoid an irreparable loss) so a stop loss on this one somewhere around works well to 546 define risk.
Conversely, and looking short, a close below support will signal a downside trade towards an immediate short target of 534. A stop at 541 works to keep things tight.
Charts courtesy of SimpleFX