The week seems rather quiet in the crypto market. There is indeed very little movement on bitcoin (BTC), which remains in a range. In such a condition, scalping could be interesting.
The week seems rather quiet for bitcoin (BTC)
Despite the Bank of Canada’s interest rate decision today, the crypto market remained intact. In the case of bitcoin (BTC), this crypto remains stuck in the $22,300 and $23,300 range. The bullish momentum since the beginning of the year, is it starting to lose strength? Yes, it appears to be. Indeed, the price is currently trading below the weekend high at $23,300. This is therefore a critical hurdle, the breakout of which could lead to further upside.
The lower part of the range in which bitcoin (BTC) is moving is at $22,300. This is the bottom of the Sunday session. Today, the price bounced off this support, and is currently heading towards the middle of the range. Just above this level is an area of very relevant short-term supply. Going short on this level could be interesting.
The right time to take advantage of a range move?
As long as bitcoin (BTC) stays in this range, a crypto trader can profit by scalping. In this case, the easiest method would be to buy at the bottom of the range, and sell at the top. However, this method is risky, if important events are at the rendezvous on the economic calendar. Thus, it will be necessary to anticipate the breakout of the range, and try to take a trade according to this. For our case, here, we anticipated the breakout of the range down. This is because several bearish signals appear on the Daily chart, such as an RSI divergence. Thus, we are considering a week in the red for bitcoin (BTC). Especially since the markets tend to reach the peak of the week on Tuesday.
In this case, our stop will be placed above $23,175, the session high on Tuesday. Our entry point is on the $23,000 supply zone. Since we are betting on the breakout of the range down, we will set the target at $21,800.
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