Bitcoin Price Breaks 300; Now What?

So last night we hit 300. Its been a few months since we’ve seen these levels in the bitcoin price, and reaching 300 shows that – despite numerous suggestions to the contrary – there are plenty of bulls out there ready to buy into any bitcoin price strength. Now action has matured throughout the Asian session, and as we head into a fresh European session this morning, what are the levels we are watching in the bitcoin price, and where are we looking next? More importantly, will the upside momentum continue today, or are we heading into a consolidation and some more corrective action? Take a quick look at the chart below to get an idea of the levels we are looking at.

Screen Shot 2015-10-28 at 12.49.59Screen Shot 2015-10-28 at 12.49.59

As you can see, today’s key levels are in term support at 298.01 and in term resistance at 304.67. These are going to be the levels that define today’s primary range. The action illustrated in the chart reveals a certain level of consolidation, with the bitcoin price having reached highs overnight and then ranged sideways for the majority of the European morning.

So what are we watching now?

Well, as mentioned yesterday, we are going to bring our breakout strategy in to play throughout the remainder of this week. So, with this said, we are looking for a break to the upside through in term resistance at 304.67 to validate a medium term upside bias, and a bullish entry towards a target of 310 flat. On this one, a stop loss is required to maintain a positive risk reward profile. A stop just the other side of resistance (our entry point), somewhere around current levels at 302 flat should do the trick.

Charts courtesy of Trading View – leading Bitcoin News source since 2012