ForexMinute.com — Last 24 hours in the cryptocurrency market has seen Bitcoin ascending silently while pursuing to break above its supposed in-term resistance line near 432.12 fiat. The short-term ascending channel is promising further upside gains but is equally poised to attempt a reversal if technical indicators are taken into considerations.
Have a look at this 4H Bitcoin chart to understand it further:
According to the BitFinex chat above, the price is trending above its 50 and 200H SMA trendlines but — at the same time — is located below the 100H SMA one. The RSI and MACD indicators meanwhile are suggesting to go south upon an expected correction phase. The technical indicators, therefore, are somewhat mixed.
We can therefore expect two outcomes from current upside trend: either Bitcoin will break above the in-term resistance (432.12 fiat) to test 437.48 as its immediate upside target, or it will fall back and reattempt a run towards 421.77 — the current in-term support level. With this in mind, we are making sure to place our risk assessment measures to avoid being chopped off in case the market acts crazy on our intraday trades.
At first, we will wait for Bitcoin to break 432.fiat to validate 437.48 as our medium-term upside target. On this trade, we would maintain our stop loss near 428.00 fiat to exit the trade in case of a volatile reversal.
Looking the other way around, a reversal from in-term resistance would have us put our initial short position towards 421.77 fiat, a line which has lately provided reasonable support to the current trend. In case price breaks below this support, we’ll enter a short towards 418.42 fiat while keeping our stop loss near 422.94 fiat.