Bitcoin on Thursday appreciated more than 2 percent against the US Dollar amidst an overall crypto market recovery.
BTC/USD yesterday was hinting a bearish breakdown action while correcting weakly from its previous low. Nevertheless, the upside momentum picked during the end of the yesterday’s US session, which continued to impress in today’s trading hours. BTC/USD surged towards its intraday high near 6645-fiat during the morning Asian session, followed by a minor weak reversal that seems to have found a close already.
Bitcoin continues to trade inside our prevailing triangle pattern. As a result, the BTC/USD is heading towards a bias conflict scenario, which would give us an equal probability between a breakout and a breakdown action. With both the breaks, we don’t mean to imply an impressive or drastic price action, but a wild swing towards the next potential upsides and downsides. In this case, we have drawn these targets at both the ends, 6784-fiat for a breakout and 6366-fiat for a breakdown.
That said, we first expect BTC/USD to jump between the triangle ranges, giving day traders decent entry/exit opportunities for small profits. Our indicators are already slowing down with respect to the low volatile action. The 50H, 100H, and 200H MAs are at a minor distance from each other, and the Stochastic oscillator is trending inside a neutral channel. Only RSI is inside a buying area, awaiting retracement at any moment.
The range we are watching for today is defined by 6645-fiat as interim resistance and 6452-fiat as interim support. That said, we are already short towards the rising (lower) trendline of the triangle formation with our stops skirting near 4-pips above the entry position. Similarly, a bounce back from the lower trendline – or even interim support – could influence us to go long towards the falling (upper) trendline of the triangle formation, while maintaining a stop around 4-pips below the entry position.
In the event of a breakout above interim resistance, which would also mean the invalidation of a false breakout, we will go long towards 6784-fiat. In this position, a stop loss 3-pips below the entry level will define our risk management very well. Similarly, a breakdown action below the interim support will have us put a short position towards 6366-fiat while keeping a stop loss somewhere four-pips above the entry level.
Featured Image from Shutterstock. Charts from TradingView.