ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin unable to sustain above the channel support near 230, and falling further to the downside. The crash has arrived in continuance of the prevailing downtrend that was initiated upon testing 243 as the primary upside risk.
Bitcoin 4H Chart May 7
On a 4H Bitcoin chart, one can see how the price has broken below the range support, therefore unable to establish a certain bottom for itself. It further shows the completion of H&S pattern, with price falling below the 200-, 100-, 50-H SMA to indicate a further intensified bearish bias. Meanwhile, the RSI and MACD are also trending inside a selling region, looking for an invisible bottom to initiate upside corrections.
With in-term support and downside target broken, we are now looking at Bitcoin attempting to hold itself under 228, the primary downside risk in this new range. If it managed to float above this point, we might expect Bitcoin to retest 230 — this time to the upside — while targeting 234 as its primary resistance.
Conversely, Bitcoin is looking towards an uninterruptible vertical slider that could take the price to as low as 222, with further risks falling towards the April’s bottom 215. With price forming lower lows towards 226 already, there are chances of it attempting further downside actions, a point where we would urge our traders to set their stop loss just below 226 for a timely exit. If price somewhat stays above 228 for too long, and RSI tends to move upward during this time, you could place long trades towards 230 — nothing more.