Yesterday afternoon, shortly after the European session closed, we published a piece outlining the day’s action in the bitcoin price on an intraday basis. The piece highlighted the possibility of some bullish momentum as we headed into the US afternoon, and slated 274-275 as an initial upside target. A quick look at the chart of action since this piece was published vindicates the bias, with price racing out of the confines of a downward sloping channel shortly after 9 PM GMT and jumping through our target to trade just ahead of 280 flat.
Action since this rise has seen the bitcoin price correct somewhat, and we are now trading within the confines of a downward sloping trendline and the upper trendline of the aforementioned channel from which we broke yesterday evening. What does the day hold for the bitcoin price as we head into the European open? Take a look at the chart.
As you can see, within the confines of our range, there is very little room to trade without a breakout occurring. It is likely we will see some short-term bearish action towards 268 flat, and this will be the level to watch if and when we reach it. If we get a bounce, look towards 270, with a break above this level validating 272.92 initially. If we can get a close above 273, we could see another run up towards 279-280. Conversely, if we break 268 on the retest it could signal some medium-term bearish momentum. In such a scenario, 265 will likely serve as an intraday floor.
If you are looking to trade to the upside from a test of 268, a stop loss just below (somewhere around 267.50) would ensure that you are taken out of the trade in the event of any fundamental factors invalidating our bias.
Charts courtesy of Trading View