Bitcoin price today spiked 3.5 percent against the US Dollar in an attempt to recover the losses incurred on Saturday.
The BTC/USD pair started the Asian session by continuing to recover on the bounce from 6557-fiat. Despite a slow momentum, the pair protected its turg against the long-term bearish sentiment, rising to as high as 6785-fiat by the beginning of the European trading session. As US traders wake up from their sleep, BTC/USD would have already formed a near-term ascending channel, providing us potential breakout positions for the rest of the American day.
The BTC/USD is now trending above its 100H and 200H moving averages since the crossover between the two curves that could have influenced the recent uptrend. The RSI and the Stochastic indicators have meanwhile added into the buying sentiment area. The slow momentum indicator continues to foul the overall bullish sentiment. Nevertheless, the upside bias remains.
The range we are watching today, according to our intraday analysis, is defined by 6787-fiat as interim resistance and 6632-fiat as interim support. It’s a pretty wide range to apply our intrarange strategy, but what we are expecting at this point of time is a breakout action. That said, we will be constantly switching between intrarange and breakout in line with the price action.
To begin with, we are expecting BTC/USD to invalidate the prevailing ascending triangle resistance to the upside. The expected action also coincides with the invalidation of interim resistance. Should it happen, we will put a long position towards 6850-fiat, our primary upside target for Monday. At the same time, a stop loss four-pips below the entry position will protect our position from additional losses should the bias reverses.
In the event of a pullback from resistance, we will enter a short position towards the ascending triangle support as a part of our intrarange strategy. A further break and we will enter the same position towards our interim support. Similarly, putting a long position on the bounce from support will be an ideal strategy, should the bounce happen on whichever support level.
A break below interim support at 6632-fiat will have us put a short towards 6550-fiat, our primary downside target. Our stop loss will be two-pips above the entry position in case the bias reverses.
Featured image from Shutterstock. Charts from TradingView.