Earlier on this morning, we published a bitcoin price piece highlighting the action on Monday night, and offering up our thoughts on how price might play out throughout the day on Tuesday. One of the main point of the article was the range through which the bitcoin price was travelling, and the potential for a sharp move in that direction on the back of a break of either the upper or lower trendlines that defined the channel. As it turned out, it was the latter of these two trendlines that broke, and we have since seen a sharp decline, with the bitcoin price losing close to 10% of its current valuation in the space of a couple of hours. With this decline in mind, what do we expect for the US afternoon session, and what levels are we watching to either signal a continuation of the current decline or a temporary reprieve? Take a quick look at the chart.
The chart illustrates the decline, and shows a small correction from 241.86 – a level that now serves as in term support. In term resistance lies at 252.14. The real level to keep an eye on is aforementioned in term support. We have seen a considerable amount of downside pressure in the bitcoin price today, and it is hard to have anything but a bearish bias heading into Tuesday’s US afternoon session. If we get a break of 241.86, our bearish bias will be confirmed and we will look initially for a close below 240 flat to validate 235 medium-term. The optimists will look towards 241.86 as a potential floor in the current decline, and if we see a bounce from this level, it may validate a short-term bullish run. Don’t expect price to rise much higher than 252.14 over the coming few hours, however.
Charts courtesy of Trading View