After the closing of European session late afternoon yesterday, a news piece was released which highlighted the action of the day with reference to Bitcoin price. There were also some key level insights offered in order to gain some understanding regarding the overnight bias possibility. It has been suggested that an in term support or resistance will lead to bearish or bullish bias, respectively. The news also listed the targets to look into in case such a bias is signalled. As per diagrammatic representation, the chart displays what will happen overnight and what should be looked into today.
The Chart Reveals that
As per the chart, the currency did not break out of its range but has been seeing a sideways trade happening with the bitcoin price that happened throughout European night time. Between the time, however in term support closed at 241.5 and resistance at 245.0. These levels are the ones to watch out for from the beginning of UK open and all the way to the end.
Sideway Trade to Continue into Early Session
Although from the looks of it, it has been predicted that the sideway trade will continue well into the early session. However, if they do get a break in between, they will enter corresponding to the bias and take into account the weekly movement of highs as well as lows as the first respective targets. If a break is experienced below 241.50, it would signal an immediate target of 238.5 with a short entry. In an event there is an unexpected development in the digital currency domain, a small stop just short of 242 will propel out them out of the trade, incurring even a small loss.
In case the Support Sustains
To take another situation into account, if the support managed to sustain and one can move towards the in term resistance, a break achieved over 245.0 will indicate long entry and an immediate target on the upside of 248.50. Even in this case, a well targeted loss anywhere close to 244.5 keeps the risk in check when it is compared to the potential gains through the whole process.
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