An intraday look at the bitcoin price, what we’ve seen so far, and what we expect to see moving forward.
Yesterday’s action in the BTCUSD saw the bitcoin price decline just shy of $40, from intraday highs around 268.00 to lows mid evening just ahead of 228.00 flat. Our longer-term analysis of the pair (published a little earlier today) suggested that we may see a correction of this decline during today’s session, and a look at the intraday chart vindicates this suggestion.
The chart shows channel support “hit and hold” on three or four occasions throughout the European morning/afternoon, and this (along with broken resistance at 235.50) becomes the level to keep an eye on as we head into the US afternoon session.
Aforementioned resistance catalysed a downside correction in the bitcoin price on a number of occasions this morning, but action over the last couple of hours has seen this level broken and we are now retesting. If it holds, expect a return to the overarching bullish momentum, with early morning highs just ahead of 241 flat a medium-term goal.
Bear in mind that we may see a break of resistance, in which case channel support would come into play. Don’t expect bitcoin price to decline much further than the 234 region, a point from which we should see a bounce, a break back through resistance, and a run towards 241.
A break of channel support – validated by a candlestick close below 234 on a 15 minute chart – would invalidate the intraday bullish bias, and could pave the way for further decline.
Chart courtesy of Trading View