Earlier this morning we published an article highlighting the overnight action in the bitcoin price, and detailing our predictions for the coming European session. Now the European session is drawing to a close, and perspective shifts to the US, what can we expect in the BTCUSD? Let’s take a look.
From highs reached late last night (GMT), we corrected downwards towards what looks to be a likely floor around 286. From this level, we have seen an ascending triangle form and carry price to where we now trade just ahead of 290. The parameters of this triangle are the levels to keep an eye on – primarily resistance just shy of 293. We will look for a close above 293 on an intraday level to validate an initial upside bias towards 297. Keep in mind that 294 could offer up some resistance – likely nothing more than a short term correction, but something to consider when setting risk management parameters.
Conversely, if the bearish momentum takes hold, we might see a decline before the day’s close. A break out of the triangle to the downside (through triangle support at 289-290) would validate the aforementioned floor at 286 as an initial downside target.
Bear in mind that action over the past few days has been relatively volatile, and that any fundamental developments could quick reverse a technical bias. A stop loss placed just below the triangle apex – somewhere around current levels in the event of a break through triangle resistance – would ensure a timely exit in the event of a downside break.
Are you trading bitcoin or any other cryptocurrency on an intraday timeframe? Where do you think the bitcoin price will go next week? Is 300 a realistic upside target? Let us know what you think!
Charts courtesy of Trading View