A little earlier today we covered the decline in bitcoin price throughout yesterday afternoon’s session, and the relatively flat action we saw as we approached the European open for Monday. Action has now matured, and a look at the bitcoin price on an intraday level offers up a bullish short-term bias, and the potential for further gains as we head into the US afternoon. So, with this in mind, what are the levels to keep an eye on? Let’s take a look.
Today’s action has seen BTCUSD trade relatively erratically, though we remained within a downward sloping widening channel until about 2 PM this afternoon. We broke out of the channel to the upside around this time, and immediately ran up to what now serves as the level to keep an eye on just ahead of 237 flat. We’ve seen something of a correction from this level, and price will likely retest aforementioned broken channel resistance as support over the coming hour or so.
If we get a support hold (i.e. price not breaking below 235 flat) we will likely get a run towards 237. We are watching this level carefully, as we believe that a close above 237 flat would bring about further bullish momentum, and validate 239 as a medium-term intraday bitcoin price target.
As ever, be aware that anything fundamental could quickly reverse this bias and so we must introduce some form of risk management into our trading. On the current setup, there are two available stop loss levels. One – the more aggressive level – lies just ahead of 234 (relying on 235 flat to hold as support). The second, a more conservative stop loss could be placed just ahead of 232 – the lower end of the aforementioned downward sloping channel.
Charts courtesy of Trading View