A little earlier on this morning we published a piece highlighting the overnight action in the bitcoin price, and outlining the levels our traders were looking to keep an eye on as price matured and the European session took place. Now the European session is drawing to a close, what has action throughout today told us about the expected movements in the bitcoin price this evening (GMT), and what are the levels to keep an eye on as we head into the US afternoon session? Take a quick look at the chart.
As the chart shows, price at time of writing is currently just breaking above what we slated as in term resistance little earlier on today, having traded relatively flat throughout the majority of the European session. According to our previous analysis, this break signals bullish momentum, and an upside entry. We will initially be looking towards 251 as a short-term upside target, with a stop loss just below current levels around the 246 flat mark. This will ensure that – if we do break back down into the range outlined, we are taken out of the trade for a quick loss and can enter again on another break if we get it a little later on. Our medium term target in the bitcoin price is highlighted as current weekly highs, somewhere just shy of the 253 mark.
Looking the other way, we may get a break back down and a holding of resistance as we saw around 4 AM (GMT, again) this morning. While our signal bias is to the upside, if we do get a convincing correction from the current level, some of the more aggressive traders make be willing to switch their bias and enter short towards an initial downside target of 240.18, with a stop just above current levels – somewhere near 249.
Charts courtesy of Trading View