Every so often, we will set up our key levels in the bitcoin price market on a particular day, and – as price plays out over the next few days – we will see them hold firm over and over again. While this can help us in our trading, it is also a nice confirmation that our level placement is on point, and instills confidence in our strategy going forward. We are now on Friday evening, and about to head into what looks to be something of an uncertain weekend. As such, confidence in our key levels is a good thing. The bitcoin price has been up and down this week, with breakouts in both directions, and we have tightened up our parameters over the last few days in an attempt to limit our exposure to said volatility. So, with this said, and as we head into the weekend, what are the levels we are looking at in the markets tonight, and where will we look to get in and out of the markets if we get a rerun of the volatility we have seen over the last few days? Take a quick look at the chart below to get an idea of tonight’s range.
As the chart shows, and as aforementioned, the levels we are watching tonight are levels we have predefined towards the end of this week. In term support comes in at 457.96, while in term resistance comes in at 461.95 to the upside.
Id we get a break above in term resistance (we don’t need to wait for a close on this one as it’s a scalp trade) we will entry towards 464.89, with a tight stop around 461 flat defining our risk.
Conversely, a break below support at 457.96 will put us short towards 454.92. A stop on this one around 458.5 keeps things attractive from a risk management perspective on this trade.
Charts courtesy of Trading View