In our twice-daily bitcoin price analysis earlier this morning, we highlighted the range through which the bitcoin had been trading for the past 24 hours or so, and outlined a number of key levels that will be keeping an eye on throughout the European session. Now action has matured, and we are heading into the European close and the start of the US afternoon session. What are we keeping an eye on in the bitcoin price at the start of – and as we move into – the weekend? Take a quick look at the chart. As the chart shows, range resistance held a little earlier this morning, and we corrected to the downside towards in term support at 251. We didn’t quite reach this level, however, as we turned around just short of lunchtime in the UK, and we are now trading just below the day’s highs.
Will be watching in term support at 251 and resistance at 256.95 closely over the coming few hours. If we trade back up to resistance – and get a break above 256.95, it will validate an initial upside target of 261 flat. A stop loss just shy of 256.95 (somewhere around 255.5) would ensure we are taken out of the trade in the event of a bias reversal.
Looking the other way, if we trade down towards 251 flat, we will look for a break of this level to validate 247 as a medium-term downside target. In this instance, a stop loss will be placed around 252, giving us a nice risk reward profile on the short trade.
Charts courtesy of Trading View