Bitcoin price on Saturday found a key support area near $6,464 after closing on the same level the previous day.
The BTC/USD today rose as much as 2.5 percent from the intraday low in an upside correction attempt. Yesterday, the pair had broken below a critical near-term ascending trendline to target 6466-fiat as its primary downside, as was predicted here. It was the same level at where traders went long towards 6500-6600-fiat area, causing a corrective bounce back. By the time the market reached the mid-European session, BTC/USD had established an intraday high towards 6617-fiat. As of now, the pair looks to be extending the correction trend, with an aim for a breakout above 6600-fiat.
Following the invalidation of the near-term ascending trendline, and a subsequent breakdown towards 6464-fiat, BTC/USD downside target is now shifted to the medium-term ascending trendline depicted in black. The 100H SMA in blue is also crawling closer to its 200H MA, awaiting a crossover that could confirm a rally towards the descending trendline in red. RSI indicator is signaling a bounce back from 30-40 buying range towards a more neutral area. The Stochastic Oscillator is also heading towards the overbought threshold to its up.
The technical indicators are pointing to a neutral sentiment in medium-term, meaning potential intrarange opportunities can be found between 6464-support and 6827-resistance. Let’s discuss it in the next section.
We are now near our interim support near 6550-fiat while eyeing 6600-6620 area as a potential upside target. A reversal from the current bullish correction, however, is also possible. That said, we will be first taking care of our risk perspectives before deciding which position to enter first.
We will first wait for a pullback from 6600-area in order to validate 6550-fiat as our short target. While opening a short position, we will keep our stop loss just 2-pips above the entry level to minimize our losses if the current uptrend continues. An extended downside action, however, will have us put another short, this time towards 6464-fiat, our key support. In this position, a stop loss just another 2-pips above the entry point will do good.
Coming to our breakout perspective, a continuation in upside correction will allow us to put our open long positions towards 6700-fiat. A stop-loss only 4-pips below the entry level will define our risk management.
Trade safely! Have a good weekend.
Featured Image from Shutterstock. Charts from TradingView.