In yesterday’s bitcoin price technical analysis piece, we highlighted the range through which the BTCUSD was trading throughout the European session and the early US session, and suggested that the lower and upper channels of the aforementioned range with the levels to keep an eye on to form a short-term bias in the bitcoin price. As it turned out, it was the lower of the two levels that proved decisive, and gave us a downside break towards an in term floor fresh weekly lows. Wesley break take us, and what are the levels we should be watching now? Take a look at the chart below.
As the chart shows, we broke out through in term support (i.e. channels lower resistance) around 6 PM GMT yesterday evening, just ahead of 265.50. From this level, the bitcoin price collapsed to the aforementioned floor – around 260 flat – but quickly recovered to trade higher than pre-break levels, reaching 268 flat within the space of a couple of hours. From this level, we corrected a small amount, and have been ranging downwards between confines of a downside sloping channel ever since. Once again, we are looking at channel support and resistance to enter our bias. Recovery training just ahead of 264, and if we get a break above 264.50 (circa channel resistance) we will look for a run towards 269.58 on a bullish bias. We may see a small correction before the run takes place, offering a nice conservative entry for those wishing to take a little less risk on the trade.
Conversely, if we test resistance and it holds firm, it would give as an initial short-term downside target of 260 flat (channel support at present). A break below this level would validate the weekly lows we mentioned earlier at 260.37 to the downside.
Charts courtesy of Trading View