A little earlier on this morning, we published our twice daily bitcoin price watch piece. In the piece we outlined the levels we were looking to watch in the bitcoin market throughout Friday’s session, and stated that – if we got the volatility we were looking for – we would look to enter according to our breakout strategy in an attempt to draw a short term scalp profit on the action. Action has now matured throughout the day, and we are heading into the close of the European session and the beginning of the weekend. In the majority of other financial assets, markets would be pitching to close for he next couple of days. Not in bitcoin, however. Indeed, the weekend is where we seem to be getting most of the action as late, so it’s worth setting up some key levels to watch as we head into Friday night incase we get a reiteration of the past few weeks’ volatility. So, with this said, here are the levels we are keeping an eye on in the bitcoin price this evening and beyond. Take a quick look at the chart.
As the cart shows, today’s action has been pretty volatile. We reached the level we slated as in term resistance a little earlier on this afternoon at 280 flat, and have since corrected towards I term support at 273 flat. From support, we have bounced a little to trade at current levels around 278. Since we have not breached either of our key levels, they will be the ones we hold going into the weekend.
We will incorporate our standard breakout strategy going forward, so a break above 280 flat will bring 285 into play as a medium term upside target, while a break below 273 would bring 265 into play to the downside. On both entries, a stop around $2 the other side of the entry point will help to keep things attractive from a risk management perspective.
Charts courtesy of Trading View