Yesterday’s action in the bitcoin price saw the BTCUSD spent the majority of the day ranging between in term support around 240 flat and resistance just ahead of 243. In our twice-daily bitcoin price technical analysis piece, we highlighted these as the levels to keep an eye on heading into the US afternoon, and suggest a break of either would offer up a medium-term bias and validate a target in the direction of the break. Now action has matured overnight, how did the bitcoin price respond to the levels we watching, and what should we be looking at as we head into Thursday’s European session? Take a quick look at the chart.
As the chart shows, it was the higher of the two highlighted levels that eventually broke, with bitcoin boosting through the 243 resistance level shortly before 9 PM last night (GMT). We had slated 247 flat as an initial upside target, and we reach this level shortly after the break. We gain broke through highs to reach 248 flat around 2 AM, and since corrected to trade just ahead of 244.81 – a level that served as strong support and resistance in the past. As we head into today’s session, this will be the level to keep an eye on.
We will be looking for a bounce from this level to offer up a short-term bullish bias, with an initial target back up towards aforementioned 248 flat. A stop loss somewhere around 244 offers a 1:2 risk reward profile, and would be enough to take us out of the trade for just a small loss in the event of a bias reversal. If support breaks, and we close below 244.81 an intraday level, we will look to 241.58 as a medium-term downside target. Once again, a stop loss placed just above 245.5 will take as out of the trade if things turn against us.
Charts courtesy of Trading View