Yesterday afternoon we published this piece outlining the day’s action in the bitcoin price, alongside the potential future action as we headed into Tuesday evening and beyond. Having matured overnight, the bitcoin price has held a range within a downward sloping triangle frame, very similar to what we saw at the same time a day earlier. Now, as we head into the European open on Wednesday, what can we expect from the BTCUSD going forward? Let’s take a look.
The first thing to notice is the aforementioned triangle. having hit highs just ahead of 297 yesterday afternoon, the BTCUSD corrected towards what now serves as in term – and triangle – support around the 287 flat level. Since this correction, we have seen price bounce from 287 repeatedly, and this has now become the level to watch, alongside the triangle’s upper trendline – currently just ahead of 290.
We are looking for an upside break of the triangle, i.e a break above 291 and a close above this level on the 15 minute candlestick chart, to signal a return to the bullish momentum we saw yesterday. If we get this break, we have an initial upside target of aforementioned highs at 297. We would then look for a close above 297 to validate 300 flat, medium term.
Bear in mind that if we do get a triangle breakout, we may initially see a short term correction to test broken resistance as support. this retest offers the more conservative trader a chance to get in with an extra level of confirmation.
For those entering on an upside bias as inferred by a triangle break, a stop loss below the triangle floor (somewhere just shy of 286) would ensure you are taken out of the trade for a small loss in the event that the triangle floor breaks and our bullish bias becomes invalid.
Charts courtesy of Trading View