This week has been one that we would rather forget in the bitcoin price. Having gained considerably during the end of last week and especially throughout Sunday’s European session, the bitcoin price has declined at a consistent rate throughout the majority of this week, and – while we thought we may get some reprieve heading into the weekend – action on Thursday night and early Friday morning has simply compounded the recent bearish momentum and brought us to trade pretty much at the levels we were looking at pre-gains last weekend. We have managed to enter according to our intraday breakout strategy couple of times – and have drawn a few downside profits – but in the grand scheme of things, we would rather be looking to the upside. So, with this said, what are the levels that we are keeping an eye on in today’s European session, and will we finally see some upside momentum returns as we head into this weekend? Take a quick look at the chart.
As you see from the chart, action overnight has brought the bitcoin price to trade at what now serves as intraday lows and in term support at 272.28, around 7:30 AM this morning (GMT). From this level, we have corrected slightly to trade around current levels (275 flat – or thereabouts) and 279.05 will bring us in term resistance during today’s session.
We will initially look for a break of 279.05 to validate a medium-term upside target of 284.52. On this trade, a stop loss somewhere around 277 flat will help us to maintain a positive risk reward profile on the trade, whilst keeping just about enough room for us to avoid a chop out in the event that we turn around to trade within range during the day.
Looking the other way, if we get some further bearish momentum, a break below 272.28 would validate 268 flat as a short-term downside target.
Charts courtesy of Trading View