Early this morning – shortly before the European session open for the day – we published a piece highlighting the fact that the bitcoin price had traded within a triangle at the end of an uptrend (having corrected from highs just shy of 295) and that a break of this triangle would hint at further bullish momentum. Further, we suggested that – if we saw such momentum – we may see 300 hit before the day was out. Action as the European session has matured – and further into the US afternoon session – has seen this bullish bias vindicated. As the chart shows, we broke out of the triangle shortly before midday (GMT) and – having initially declined to retest broken resistance as support – the bitcoin price shot up to trade at daily highs across the BitStamp exchange of 296.81 – a mere three dollars shy of the 300 long-term target. What should we expect from the bitcoin price as we head into the US afternoon session and beyond? Take a quick look at the chart.
As the chart shows, we have corrected from aforementioned highs to now trade just ahead of 290 flat. There is plenty of support around this level, so don’t expect us to trade too far below 289 before a resumption of the upside momentum. If we hit 289, look for an initial bounce followed by a small correction. If on this retest we see another reversal, it would validate 296.81 as an initial upside target. A close above 296.81 would once again bring 300 flat into play medium-term.
A stop loss just below 288 would ensure a timely exit from any long trade in the event of the bears regain control of the BTCUSD.
Charts courtesy of Trading View