A little earlier on this morning, shortly before the UK session kicked off the day, we published our twice-daily bitcoin price watch piece. In the piece, we highlighted the downside action we had seen overnight in the BTCUSD on Thursday, and suggested a couple of key levels that we would be watching as the day matured to help us a) form a bias on an intraday basis and b) enter a position to draw a scalp profit from the markets.
Action has now matured throughout the day, and – as we head into the weekend – we have gained some insight into the potential direction of the BTCUSD going forward. With this said, what are the levels we are keeping an eye on, and did we manage to enter a position today? Take a quick look at the chart.
As you can see, action today has remained pretty much well within what we are now looking at as in term support at 229 flat and resistance at 232.17. These are going to be the levels that we keep an eye on as we head into the weekend. Current action looks to be temporarily bearish, and especially if get a break below 230.5, we would expect a run towards 229 flat. A break below this level would validate 225 flat as a medium-term downside target, with a stop loss just ahead of 229.50 taking us out of the trade in the event of a bias reversal. Looking the other way, if we get a break above 232.17, we will enter long towards 234.48, with a stop loss just below 231.50 ensuring our risk profile remains favorable.
As a side note, we’ve seen some volatile action over the past few weekends, so make sure if you are looking to enter in any direction, stops are tight and risk is defined.
Charts courtesy of Trading View
