Earlier on 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 the Friday European session, and suggested a couple of potential targets and stop losses for the day’s action. Now we have seen the bitcoin price mature throughout Friday, what are the levels we are keeping an eye on as we head into the weekend, and how will we be looking to take a position on the breaking of any of these levels heading forward? Take a quick look at the chart.
As the chart shows, action today has been pretty erratic. Shortly after we published our piece this morning we ran up towards our in term resistance but immediately broke down below support. We entered short on the break and hit our target relatively quickly. From this level, however, we bounced back up to trade within range, and we are now looking at 222.27 as in term support and 225.69 as in term resistance. These are the levels to watch over the weekend.
If we can get a break below 222.27, we will look to today’s lows at 219.03 as an immediate and medium-term downside target. This gives us quite a lot of room for a stop loss, so somewhere around 224 will leave us enough room to evade a return to trade within range, whilst keeping our risk reward profile positive.
Looking the other way, if we get a break above in term resistance at 225.69, it would present us an upside opportunity towards an initial target of 230 flat. On this trade, a stop loss somewhere around 223.50 will keep our risk to reward positive and also ensure that we are taken out of the trade in the event of a bias reversal.
Charts courtesy of Trading View