In yesterday’s technical analysis piece, we covered action in the bitcoin price throughout Tuesday’s session, and outlined our predictions for the likely future of the bitcoin price as we head into Tuesday evening and beyond. Now we have seen BTCUSD mature overnight, what does price tells about the likely direction of the BTCUSD as we kick off another day’s trading in Europe? Let’s take a look.
First of all, it is worth highlighting that the bitcoin price remained within a downward sloping channel trading on little to no volume throughout the majority of the evening. A sharp volume spike initiated a quick break of the channel’s lower trendline recently (around 9 AM GMT) but we soon saw this break reversed and we’re now trading somewhere around the 280 flat level. Aforementioned channel support (near 276 at present) and resistance (just shy of 282 at present) are the levels to watch. We may simply continue to trade within this channel, with a bounce from support offering up aforementioned resistance as an initial upside target for a quick range bound trade. However, if we can break to either the downside or the upside, we will likely get a sustained bias for the remainder of the day. In the event of the former scenario, look initially to 274. A break below this level would validate 270 flat medium-term, with a stop loss just above broken channel support ensuring a timely exit in the event of a bias reversal.
Conversely, if we can run past 282 there are a series of step levels we will be looking at. 284.35, 285.97, 288.36 and 290.61 all offer us valid upside targets on a bullish bias. An entry and a stop loss just below each of levels will keep reward firm and risk tight.
Charts courtesy of Trading View