ForexMinute.com — Last 24 hours in the cryptocurrency market encountered Bitcoin committing to its prevailing sideways movement on yet another weak volume day. The constant arrival of long positions and the absence of enough downward pressure however has kept our bullish hopes alive. Let’s have a detailed look:
Bitcoin 4H Chart
Nothing has much changed inside the Bitcoin market. As you can see the 4H BitFinex chart above, the price is still in a neutral-bullish mood, for it is above the 50-, 100- and 200-H SMA and the RSI is also shy of entering the buying region above 60. The MACD blue curve is also situated inside a positive region, aligned tightly with the saffron signal curve.
The strict sideways movement can always shake traders to sell their holdings, in order to introduce some volatility to the charts. A near-term bottom is likely to be tested if price fails to cross above the upside risk near 245. We are therefore placing our bets on 238-240 area, where Bitcoin has previously formed lower lows.
Failing to hold above this area will generally put pressure on the channel support near 230, which might reject an extended downside momentum, only to shoot back the price towards the first occurring resistance, whichever it may be. At the same time, we will have to look for price validating the trendline borders which, if crossed to the downside, will bring in a medium-term bearish bias towards 230, as stated.
Coming back to the current levels, the Bitcoin price is forming higher highs towards the in-term resistance 245, with an upside risk towards 249-250 area. It would be advisable for traders to place their stop losses just below 244, in case the upside bias invalidates. Meanwhile, keep looking for reverse action at peaks that might some really attractive short positions.