Earlier today we published a piece outlining the bitcoin price throughout the weekend and Monday morning, and highlighting our predictions as price action matured throughout the European session. As we head into the European session close, and as the US afternoon opens for business, what has today’s action told us about the likely short to medium-term future in the bitcoin price? Let’s take a look.
As the chart shows, a little earlier on this afternoon we broke out of the upward sloping channel through which we spent most of the day trading, and the BTCUSD now sits just ahead of in term support at 290.99. Aforementioned support lies at the afternoons low – just ahead of 289.33. This will likely be the level to keep an eye on over the coming couple of hours. One of two things is likely to happen. First, we will likely see a retest of aforementioned broken support (now serving as upper channel resistance). If this resistance holds, look to 289.33 as an initial downside target. We will be looking at this level to serve as a medium-term floor, and a long entry from 289 would validate a run up towards 294.22 to the upside.
Conversely, we may see an immediate break of resistance on the retest. In this scenario, look for a run towards 294.22 initially, with 297 serving as a longer-term upside target if we can break above. On both entry positions, a stop loss is paramount. A stop loss just below 289 flat on the former long position, and a stop loss just below 292 on a break of resistance would ensure a timely exit in the event of a bias reversal.
Longer-term, 300 flat remains the ultimate upside target. Here at News BTC we believe that – from a technical perspective at least – if we can break above 300 and remain there for at least 72 hours, we will likely not see the bitcoin price in the 200s for the coming few months. What do you think? Let us know!
Charts courtesy of Trading View