It’s been a few days since we published an article addressing the bitcoin price on a short-term basis over the last 24 hours or so, and in turn, our forecast for the coming European session. Since the beginning of the week, we’ve seen some pretty dramatic action in the BTCuSD, and a quick look at the 15 minute timeframe chart across the BitStamp exchange suggests that this is unlikely to change over the coming 24 hours. This does not mean, however, that there is not a viable set up from which we can draw profit from the fluctuations in the bitcoin price as we head into the European morning. With this in mind, what are the levels to keep an eye on? Take a look at the chart.
As the chart shows, the bitcoin price hit weekly highs late yesterday night, topping out just shy of 285 flat. Since then however, we’ve seen a steady decline through a descending channel to where we now trade – approximately $10 lower than the aforementioned highs.
The downward sloping channel offers was some trade parameters, with 272 flat the level to keep an eye to the downside and current levels (around 276) likely to serve as resistance. One of two scenarios is likely to occur. First, we could get a decline towards aforementioned 272 support, followed by a retest reversal and a run back up towards current levels. If this is the case, look for a close above 275 flat (downward sloping channel resistance) to validate a bullish reversal and offer up aforementioned weekly highs at 285 as a medium-term upside target. On the bearish side of things, we may not see a break above resistance, and we could see a reversal on the test. This would validate a medium-term bearish bias, and could – pending a break below 271 – bring 265.83 into play medium-term.
Charts courtesy of Trading View