Yesterday afternoon we published a piece outlining the day’s action in the bitcoin price and our forecast for BTCUSD as we headed into the close of the European session and beyond. We slated two potentially conflicting biases, and suggested the levels to keep an eye in both scenarios. As action matured, the bullish variant was validated, and we saw fresh weekly highs reached around 6pm GMT yesterday evening. This said, what are we watching now, and what do we expect from the bitcoin price as we head into the weekend? Let’s take a look.
As mentioned, we saw some upside momentum in the bitcoin price overnight. Having broken free from the downward sloping channel formed throughout the afternoon, the BTCUSD ran through previous highs at 296 to reach a level just shy of 298 – edging ever closer to the 300 level we have been targeting all week. Having reached these levels, we saw a correction towards in term support at 291 (a level that now serves as in term resistance), and a break down to daily lows around 286 flat – now in term support. These two aforementioned levels are the levels to watch as we head into the UK morning session.
Action around 291 will give us our bias. If the level holds as resistance, expect some short term downside momentum towards 286 flat, and a test of support. If we can get a break of 291 however, it would validate a medium term bullish bias, and hint at a potential run towards aforementioned highs. A break would likely precede a short term correction, and a retest of broken resistance as support should give us a nice entry point to go long, with a stop just shy of 291.
Charts courtesy of Trading View