A little earlier on today we published a piece highlighting the action in the bitcoin price on Thursday evening, and noted that – despite the recent decline – there may be room for a temporary bullish bias during the European session. We offered up the levels we watching, and suggested that – if price reached these levels, we would use them as a bias inference. Now action has matured throughout the European session, and we are heading into the US afternoon, what are the levels we are looking at in the bitcoin price? Take a quick look at the chart.
As you see, the levels we are looking at remain in place from this morning, and action has been relatively muted throughout the day, with tight range bound and consolidating movements. We broke in term resistance at a little earlier on at 251.96, – a level from which we suggested we would enter long if we saw a break, with a stop loss around 249-250. It is this level that we are still looking at now. If we can hold above it, then we will likely get a move towards our initial upside target just shy of 258 flat.
Looking the other way, if we get a break back down into the range we saw last night (as dictated by in term support at 243.48 and resistance at 251.75, we may see an overnight decline towards aforementioned support. A break below this level would validate 237.67 longer-term. In the event of such a break, a short entry with a stop loss around 245 flat would offer up a nice risk reward profile.
Charts courtesy of Trading View