Bitcoin Price Rockets; Bulls Take Control!

In this morning’s bitcoin price watch piece, we highlighted the levels that we would be watching during today’s European session, and suggested how we would respond to price reaching or breaking these levels as far as getting in according to our intraday strategy was concerned. We pointed out in particular that we had seen some volatility throughout Thursday evening’s European close, and as we entered into the Asian session, and suggested that we would love this volatility to continue and allow us to get in and out of the markets according to our breakout strategy if it did.

Now action has matured throughout the European session, and as we head into a fresh weekend’s worth of trading, what are the levels that we are keeping an eye on in the bitcoin price, and did we manage to get anything out of the markets today? Take a quick look at the chart.

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As you see from the chart, action during today’s session broke out and we got in according to our intraday strategy on a long trade. We quickly hit our target, and having corrected from 287.55 (which now serves as in term resistance) we hit 282.65 – a level that we are now watching as in term support. We are currently trading mid-range between these two levels, and will employ our breakout strategy accordingly.

First, we will look for a break above in term resistance to validate an upside bias, and an initial medium-term bullish target of 290 flat. On this trade, a stop loss somewhere around 286.5 will help us to maintain a positive risk reward profile.

Looking the other way, if we break back down below support, we will look to enter on a close below 282.65 towards a short-term bearish target of 280 flat. Once again, a stop loss is necessary to ensure our risk management parameters are defined, so somewhere around 283.5 looks good enough.

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