Bitcoin News – Bitcoin Price Rockets, Corrects; Now What?
At the end of last week, in our twice daily bitcoin price watch piece, we highlighted the levels we were looking to keep an eye on during Friday’s session in Asia and, beyond that, the European weekend. One thing we noted was that we had seen plenty of volatility during the week, and that if we could get a continuation of that volatility, we should have plenty of potential entry opportunities over the weekend. As it turned out, we did see some volatility to both the up and downside. So, with this said, let’s look at what we saw over the weekend, and try to outline some of the levels we are looking to trade during today’s session. Here goes.
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First of all, take a quick look at the above chart. As you can see, action brought the bitcoin price to fresh medium term highs on Saturday, though this bullish momentum didn’t last into Sunday morning and we quickly saw price reverse and correct to weekend lows last night. These lows, however, look to be offering us some level of in ter support. As such, it will be one of the two key levels we keep an eye on today – in term support at overnight lows of 260 flat. In term resistance sits at 264.2, the most recent swing high.
We will initially look for a break above in term resistance, and a close above this level on the intraday chart, to validate an upside target of aforementioned fresh highs at 271.17. A stop loss somewhere around current levels – 262 flat – will make sure we get out of the trade on a bias reversal.
Looking the other way, a close below in term support would but us short towards 255. Again a stop loss is necessary on this one – somewhere around current levels should, once again, do the trick.