Earlier this morning we highlighted the fact that – while the bitcoin price had declined during Thursday morning, we had hit support around the 235 flat level and we could well be set for some bullish momentum throughout the day. Con currently, we also highlighted the fact that – if we get a break of support, we may see further decline.
Luckily for bitcoin enthusiasts, the former happened. Support held, and we have since corrected off the upward sloping channel to trade just shy of key resistance at 237.48. What are the levels to keep an eye on as we head into the US afternoon session? Here is what you need to know.
Essentially, we’re still looking at the upward sloping channel support that we mentioned could form this morning. If we were to trade directly from current levels towards the support, we expect to hit just ahead of 236.50. From there, and if the level holds, we would look towards aforementioned 237.48 as an immediate upside target.
The question then becomes, will we see a break above this level?
If we do, we expect further bullish momentum to be the order of the day. We’ve got some small resistance likely at 238.50, and if this level does offer up some friction expect a retest of broken 237.48. This will be the signal further the bullish momentum towards a secondary upside target of 239.31.
A confirmed retest (i.e. a holding of 237.48 without a close below it) would validate the secondary upside target and suggest we could see fresh daily highs before Thursday close. For those looking to buy on the initial break and trade up towards 237.48, a stop loss just below 236 will ensure a timely exit in the event of a bias invalidation. For those looking for a slightly more conservative trade (i.e. waiting for a break of 237.48 and entering a retest) a stop loss somewhere around 237 flat is valid.
Chart courtesy of Trading View