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On Friday evening, shortly before the markets closed in the US, we published our twice-daily bitcoin price watch analysis piece highlighting the action we had seen in bitcoin throughout Friday’s session, and suggesting a couple of the key levels that we would be keeping an eye on over the weekend. We highlighted a couple of targets that – in the event of a breakout – we could draw entry upon, and suggested where our risk management parameters best lay. Now, action has matured over the weekend, and we have seen quite a lot of volatility. With this said, what are the levels we are keeping an eye on in the bitcoin price today, and how can we draw a profit from the market according to our scalp strategy? Take a look at the chart.
As the chart shows, action during Sunday’s session held all the volatility. First, we saw a sharp decline towards lows just ahead of 221.80, followed by a quick recovery and a run up this morning to daily highs of 224.63. The aforementioned of these two levels now serves as in term resistance. In term support sits at 222.55.
If we get a break above 224.63, it will put us long towards an initial upside target of 229 flat. A stop loss somewhere around 223.60 will take us out of the trade in the event of a bias reversal.
Looking the other way, if current levels hold and we get a run back towards 222.55 (in term support) we will look for a close below this level to validate an initial downside target of 220 flat, with a stop loss somewhere around 223 maintaining a positive risk reward profile. An aggressive short entry could be back down towards in term support from current levels, with a stop loss around 225 flat if resistance holds and we get a range bound bear run.
Charts courtesy of Trading View
