Last week we got pretty disappointing action in the bitcoin price, as sentiment across markets put downside pressure on the BTCUSD and we saw pretty much an entire week of flat or downside action. On Friday, shortly before the markets closed, we suggested that – depending on the response of the Greek people to proposed austerity measures in Europe, we could see some turnaround in sentiment and a shift towards global risk off assets in general markets. This was the first real opportunity we got to see whether markets view bitcoin as a risk off asset, and – to some extent at least – it looks as if they do. So, with this said, what are we watching today’s bitcoin price, and how can we draw profit from this shift in sentiment and the ensuing action? Take a look at the chart.
As you see, from lows around 258 flat seen over the weekend, action broke out to the upside during Saturday evening and then further as a result of the Greek referendum hit the media, to reach intraday highs at 274.77. This level now serves as in term resistance, while in term support sits at 267.03. These are the two levels that will be keeping an eye on today.
First, we will look for an upside break (above 274.77) to validate a medium-term upside target of 280 flat. A stop loss on this trade somewhere around 272 flat will maintain a positive risk reward profile.
Looking the other way, if we get a break back down and some short-term corrective momentum, we will initially look for a short trade from in term resistance towards in term support at 267.03, with a stop loss just above resistance keeping the trade attractive from a risk management perspective. A break below 267.03 would validate 258.78 to the downside longer-term.
Charts courtesy of Trading View