Yesterday, we noted that much of the Bitcoin price action was bullish, which eventually ended up breaking our previous in-term resistance line. This allowed us to push our upside targets towards the fresh highs near 418 fiat, but our trade fell short following a reasonable pullback near 415 fiat. Luckily, we already have our stop placed around 410 fiat in case the pullback means business.
With Asian market moving to close and European one still in play, we can already see how Bitcoin price is consolidating between a new — and slightly tighter — trading range. So, with this said, what are our new trading parameters for the day. Let’s take a look at the fifteen-minute chart to understand it further:
As the chart shows, the new range we are looking at this morning is defined by in-term resistance near 415.98 fiat and in-term support near 409 fiat. Its a pretty wide range to take out some decent profits, but due to recent price action we have seen, we think the Bitcoin price would make us focus on further upside targets.
With this said, we would first wait for Bitcoin price to regain its upside momentum and attempt to invalidate 415.98 fiat. This action would have us put a long position towards an upside target of 418 fiat — the same as discussed in the previous analysis. Meanwhile, we will make sure to minimize our downside risks by maintaining our stop near 410 fiat.
Looking the other way, a break in upside action would have us put a short position towards the in-term support line near 409 fiat. If the bearish action hints to continue, we will further signal a short trade towards 405 fiat — our medium-term downside target — by maintaining our stop just above 410 fiat.
Chart courtesy of Trading View.