At the end of last week, we published a piece highlighting the day’s action in the bitcoin price, and offering up our suggestions for likely future action as we headed into the weekend. As well as a short synopsis of what we saw so far, we presented our readers with a few key levels to keep an eye on – key levels around which, with any luck, action would offer clues into where the bitcoin price was headed. Action has now matured over the weekend, and many of our forecast levels have been hit. So, with this said, what will we be watching as we head into a fresh week of trading? Take a quick look at the chart.
As the chart shows, we got a nice bullish run on Sunday afternoon/evening (GMT) and – after a short corrective move back to the downside – we saw a continuation of the bullish run to carve out fresh weekly highs at 271.98. The importance of this run is that it effectively invalidates the bearish move seen last week as a result of the fundamental pressures. Once again having corrected from 271.98, we traded back down towards 266 flat, and we now range between in term support at 266 flat and resistance at just shy of the 270 flat mark. These are the levels to watch.
We will be looking for a run up towards 270 and a break above this level to offer up a short-term target of aforementioned 271.98. If we can’t break above this level, and we get another correction from 270 resistance, it would offer up a nice little short trade towards 266 support, with a stop loss just above 270 ensuring a timely exit in the event of a bias reversal. If we break below 266 flat, it would bring 260.47 into play medium-term, but with the recent bullish momentum an upside bias is likely the more valid.
Charts courtesy of Trading View