Just as we did yesterday evening, we’re going to kick our bitcoin price analysis off this morning with a chart. The chart below shows the action seen in the bitcoin price throughout yesterday evening, and during the night. It’s a fifteen-minute candlestick chart, with the framework that we outlined in the second of yesterday’s analyses still overlaid.
As the chart shows, shortly after we published our analysis, we got a break to the upside through in term resistance. The close that came after this break signaled a long entry, and put us in a bullish trade towards an initial upside target of 422. Since this entry signaled, we’ve been hovering at or around broken resistance (which is now serving as a sort of interim support) and as such, we are still in the trade.
We don’t enter more than one position at any one time, so we’ll be staying out of the markets until this trade either hits the aforementioned target or we get a reversal and see it take out our stop loss. Action overnight has formed some nice patterns, however, and these are actionable for anyone not yet in the game. Take a look at the chart below to get an idea of what we’re talking about.
As the chart shows, we’re looking at in term support at 412 flat and resistance at 416, and a mid-range upwards sloping triangle. Price is confined within both the range and the triangle at present, suggesting we are getting a coiling of price and – in turn – a building of pressure to the upside. This building, if we get a break, should lead to a nice sustained move.
The plan, then, would be to enter long on a break of resistance/triangle upper boundary, with an initial upside target of 422 flat. A stop at 414 defines the risk on the position.
Charts courtesy of Trading View