Following yesterday’s European session in the bitcoin price, we reported our twice-daily interpretation of price action, and offered up the levels that we would be keeping an eye on in the BTCUSD as the US afternoon session took hold and bitcoin price action matured throughout the day. We are now about to kick off another day’s trading in bitcoin, and action overnight has presenters with a couple of fresh key levels that our traders will be watching closely for bias inference this morning. This said, what did action tell about the likely short-term direction in the bitcoin price, and what are the levels that we are watching? Take a quick look at the chart.
As the chart shows, action overnight trading range bound between in term support at 245.83 and resistance at 248.78, holding a relatively tight span when compared to the volatility we have seen over the past week or so. Those levels aforementioned of levels to watch as we head into the open of the European session. Overarching momentum is to the upside, and so we will initially look for a break above in term resistance at 248.78 to validate an upside target of 253.11 – highs not seen in a week. With such a trade, a stop loss just below 248.78 (i.e. somewhere around current levels) will take us out for a small loss in the event of a bias reversal.
Looking the other way, if resistance holds firm and we get a break towards 245.83 (in term support) we will wait for a close below this level to signal a bearish entry with an initial downside target of 240.09. Once again, a well-placed stop loss will take as out of the trade in the event of a bias reversal, somewhere around 247 flat.
Charts courtesy of Trading View