Earlier today we published a piece outlining action in the bitcoin price over the previous 24 hours or so, outlining the potential fundamental factors that translated to a decline and hinting at the levels we should be keeping an eye on in order to gain insight into action throughout the European session on Thursday. Now the European session is drawing to a close, what have these levels told us about the bitcoin price, and what should we be looking at as we head into the US afternoon? Let’s take a look.
As the chart shows, the levels we highlighted this morning remain relevant to the upside, and having broken out initially from the downward sloping triangle we highlighted, we’ve seen a recovery towards our initial upside target at 263.18. Now we are looking at the upward sloping channel just shy of current levels (around 261 flat) as the level to keep an eye on. If we can get another bounce from a retest of this level, followed by a break of 263.18, it would validate 268.05 medium-term to the upside. A break above this level would bring 275.54 into play medium-term. However, and with the current fundamental pressures dwindling making it more likely, we may see a break of the upward sloping trendline and a run down towards 250 flat.
If we do get this break, an entry on the retest of the trend line around 260 with a stop loss just above this level, would make a nice short position for those looking to draw profit from weakness in the bitcoin price over the coming few hours. on the inverse, a long entry from a successful retest of the upward sloping channel as support would be protected by a stop loss somewhere around the 258 flat level, being taken out for a small loss in the event of such a bias reversal.
Charts courtesy of Trading View