Earlier this morning we published a piece highlighting the action in the bitcoin price over the weekend, and suggesting a couple of key levels that we would be keeping an eye on as we head into the European morning session. European session is now all but mature, and – in a couple of hours at least – will be drawing to a close (GMT.) This, however, does not mean the day is over. We still have the US afternoon session to come, and – as we saw last night – there is plenty of opportunity for volatility throughout overnight trading. This said, what are the levels we are watching in the bitcoin price at the moment? Take a quick look at the chart.
Earlier today we highlighted the range action between in term support at 266 flat and resistance at 269.58, and suggested one of two scenarios. The first was one in which we broke out of the range (either to the upside or the downside), defined by a break of either of the aforementioned levels. In such a scenario, we would have used the direction of the breakout as our intraday bias.
We did not see a break out, however, and we still trade within the outlined range. As a result, things pretty much remain the same as they were this morning. We will be watching for a break of 269.58 to offer up a medium-term upside bias, and validate a initial upside target of 272 flat. Conversely, we will look for a failed retest of 269.58 as resistance and a run back down to to 266.00 (within the range), followed by a break of this level to the downside, to offer up a medium-term downside bias. An initial downside target of 263.00 (currently the daily low) would be valid in such a scenario.
Charts courtesy of Trading View