Shortly before the markets closed in the UK yesterday afternoon, we published our twice-daily bitcoin price watch analysis piece. In the piece we highlighted the levels that we would be keeping an eye on during the Asian session, and suggested how we might respond not just to price reaching or breaking these levels, but how we could get in and out of the markets according to our breakout strategy if the bullish momentum we have seen throughout the early part of this week continues. Now action has matured overnight, we can safely say that this bullish momentum looks set to continue, and we got both in and out according to our breakout strategy to draw profit from the market throughout Asia. So, with this said, what are the levels that we are keeping an eye on today, and can we expect the bullish momentum to continue during today’s European session? Take a quick look at the chart.
As the chart shows, shortly before 6 AM this morning, we broke through the level that we were watching as in term resistance (256.94) and quickly run towards what now serves as in term support at 262.72. A break of this level saw new intraday highs reached at 268 flat, and – since reaching this level – we have corrected towards aforementioned in term support. We now trade just ahead of this level as we head into the open of the European session. The two levels that will be keeping an eye on our 262.72 as in term support and 268 flat as in term resistance. If we can get a bounce from current levels, we will look for a break above 268 flat to validate a medium-term upside bias towards an initial target of 272. A stop loss on this trade somewhere around 267 flat will maintain a positive risk reward profile.
If we do get a low but bearish momentum throughout the morning, we will look for a close below 262.72 to validate 256.94 medium-term – however – with the current action this is the less-likely-to-occur trade.
Charts courtesy of Trading View