Earlier this morning we published an intraday technical analysis piece highlighting the overnight action in the bitcoin price, and detailing our forecast for action during the European session. Now Friday’s action has matured, and we are heading into the US afternoon, what can we expect in the BTCUSD, and what are the levels to keep an eye on as we head into the weekend? Let’s take a look.
In this morning’s piece, we outlined the upward sloping channel through which the bitcoin price was trading, and suggested that the upper and lower boundary of this channel were the levels to watch for a potential medium term bias. We also suggested that we may see a continuation of the current range, and that – on a decline and a retest of support – a bounce would validate this continuation. The latter of these two suggestions is what has occurred, and so – as a result – the key levels we outlined earlier remain relevant.
SO what does this mean? Well, simply, that we will continue to look at action around the upper and lower boundaries of the upward sloping channel to dictate our bias. From the point at which we are currently trading, we will likely see a run towards in term resistance around 268 flat. If we can get a break above this level, it would validate 274.84 medium term. If we don’t get this run, however, look for a break of in term support at 260 flat to validate a medium term bearish bias. Such a scenario would validate 250 flat to the downside as a longer term target.
Remember, we’ve seen a lot of volatility over the last few days so keep your stop losses tight to ensure that you get a timely exit in the event of a bias reversal!
Charts courtesy of Trading View