Bitcoin Price Watch; Channel Suggests Further Upside

Here's what we are looking at for this morning's European session, in accordance with yesterday's multi timeframe analysis of the bitcoin price.

Yesterday, in the second of our twice daily bitcoin price watch pieces, we zoomed out to a wider timeframe and took a look at the bigger picture – still intraday, just with a little more perspective. It revealed that the bitcoin price was trading within a relatively confined upward sloping channel, and that at the point of publication, we were somewhere mid range. This opened up the potential for a sustained move in either direction, and I turn, an entry according to our breakout strategy.

Things turned out exactly as planned, and overnight we got an upside break and a bullish signal. We entered long on the break, and drew a nice quick profit target from the action. We’ve not yet reached the upside parameter of the channel we highlighted yesterday, however, so there’s still room for further volatility if we get a decent catalyst.

As such, we’re going to set up a pretty tight breakout strategy framework in and around today’s European morning action, and see if we can’t get a repeat of overnight’s success. The chart below (a 15 minute, intraday chart showing circa the last 24 hours) details the levels we are watching.

Screen Shot 2016-03-17 at 09.20.21

As the chart shows, today’s in term support comes in at 416.flat, and the range is rounded off by a 418 resistance. This is one of the tighter ranges we’ve traded, so there should be plenty of opportunity for entry. Intrarange is not an option, however.

So, let’s get to the framework. A long entry will signal on a close above in term resistance. Well target 421 and define our risk with a stop at 417 flat.

Conversely, a short entry will signal on a break and close below in term support, and we’ll look to enter towards 414 flat (highlighted) with a stop at 417 .5 protecting our downside.

Charts courtesy of Trading View

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Samuel Rae

Samuel is a currency trader, author and contributor to a number of the leading forex market publications including Futures Magazine, FX Trader Magazine and Spreadbet Magazine. He is a an avid bitcoin enthusiast with a real interest in how cryptocurrencies are likely to affect global economics in the future.