Earlier this morning we published a piece that highlighted the action we have seen in the bitcoin price over the past couple of days. We noted the run towards 300 we saw on Tuesday afternoon, the subsequent correction towards 287 flat, and the triangle that formed and contained price action throughout Wednesday morning in Europe. Now the European session is drawing to a close, we have seen the pattern that we highlighted complete, and the bitcoin price once again resume its bullish momentum. With this said, what are the levels to keep an eye on as we head into the early US afternoon session, and what action do we need to validate an upside target? let’s take a look.
First, its worth addressing the breakout that validated the triangle and offered up the bias in the first place. The breakout took place during the UK morning session, with BTCUSD breaking the triangle’s upper channel around the 290 flat mark. From the breakout, we saw an initial rally towards 292, then a brief correction that retested the triangle’s resistance as support. It is from this retest that we are currently rising, trading at time of writing just ahead of 294.
296 is the level to watch over the next couple of hours. If we can break above this level, we will likely see a run towards 300 flat before the close of the US session. A conservative trader could enter on the retest of broken 296 resistance as support, and use a stop loss just shy of 296 (somewhere around 295.5) to ensure that they are taken out of the trade for just a small loss in the event of a fundamental reversal and a bias invalidation.
Charts courtesy of Trading View