Chart of the day

Bitcoin is bouncing off the 27000 support and is testing the 30600 resistance for a continuation higher. The support zone is 27000-28000 for this extension higher.

Only a break below 27000 will invalidate this extension higher and would change the Elliott Wave long-term count. The key medium-term and Q4 20203 resistance level for a strong upside continuation is 31000.

Long trades are favored to be opened here with a stop loss below 26700. We prefer the long trade entries and building a buying position at this stage as we see an ongoing price action to continue higher after the strong confirmed bounce off 27000. Short trade entries could come only upon a confirmed break below 26500.