Earlier this morning we published a piece highlighting the action we saw over Wednesday night in the bitcoin price, and our forecast for Thursday. Now, as we head into the close of the European session, and US afternoon begins, what ca we expect moving forward? Let’s take a look.
As we mentioned this morning, price hit the weekly highs we saw on Tuesday once again on Wednesday evening, and since then we have traded in a downward sloping channel towards what now serves as in term support at 291.92. We are currently trading just shy of channel resistance around 294 flat. Action around this level will likely dictate movement over the coming few hours.
We will look for a close above 294 to signal a bullish break and offer up a medium term bullish bias. In such a scenario, we will look to aforementioned highs just ahead of 297 flat as an initial upside target. Bear in mind that we may see a short term correction in the bitcoin price after the breakout, and that this retest could offer a nice conservative entry point with a stop loss placed just below broken resistance – somewhere around 293 flat.
Looking the other way, we may see a correction from channel resistance to the downside. If this is the case, look for an initial decline towards 291. A break below 291 would bring channel support at 290 flat into play medium term.
Charts courtesy of Trading View