During yesterday’s session, we got relatively little action in the bitcoin price, a trend that we have seen play out pretty much all week. For our scalp strategy, this has translated to relatively few entries, and some frustrating chop outs. Action on Thursday evening also remained relatively flat, with a short-term downside break that has now been corrected pretty much the only opportunity for entry. Now, as we head into the weekend, what are the levels that we will be keeping an eye out for during the Friday European session and beyond? Take a quick look at the chart.
The levels we’re keeping an eye on today are highlighted at 233.99 to the downside (in term support) and 236.80 to the upside (in term resistance). This range is little wider than that which we have been looking at all week, but probably still too tight to employ our intra-range strategy (i.e. long at support and shorter resistance with a stop either side of any entry).
So, with this said, what will be looking for today? Well, if we get a run up towards 236.80, we will enter on a close above this level on an intraday chart with an initial upside target of 239.24. A stop loss somewhere around 235.5 flat will take us out of the trade if we return to trade within the range, but also leave enough room to avoid us being chopped out in the event of a short-term reversal.
Looking the other way, if price returns to trade to the downside and we get a close below 233.99, it will put us short with an initial downside target of 230 flat. With about four dollar’s worth of reward, we can afford a stop loss somewhere around 235.50 (again) and be relatively secure as far as being taken out of the trade for just a small loss is concerned.