ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin attaining a near-term upside momentum, while maintaining an overall bearish bias. A buy signal formed just hours back has also invalidated the resistance level we discussed in our previous analysis. It truly indicates the real nature of Bitcoin market which, at times, can surprise us with unannounced volatilities.
Our intraday breakout strategy, therefore, tries to stay away from any volatile action. We had therefore placed key levels to get in and out of the market without inflicting any negativity on our trades. As a result, we were able to take out a decent profit from yesterday’s choppy movements. And as we now enter another day of trading, the recent upside momentum has invalidated our parameters. What are the new ones? Let’c check out:
Bitcoin 4H Chart
The recent upside volatility has brought Bitcoin within a new range, with 230.03 fiat serving as the in-term support and 233.92 fiat as in-term resistance level. These are the levels we’ll be watching for today. But first, let’s understand the technical landscape.
As we can see the 4H BitFinex chart above, the price is trending a little above its 50 and 200H SMA, while is still below the 100H one. The RSI has also surged above 50, indicating a neutral mood in the market. The MACD indicator, on the other hand, is now near the normal line. All these indicator jointly points to a bias-conflict. However, with recent action, we can expect price to test the 100H SMA before taking another downturn towards 220s.
With this said, we would first be hoping for price to test the in-term resistance level, only to validate 234.91 as our medium-term upside target. While placing this trade, we would be keeping our stop loss somewhere near 232.95 fiat to get us out of the market should a downside correction appears.
Looking the other way, a discontinuation in the current rally would have put a short towards the in-term support level. We will however look to make this entry only when price crosses below 232.21 fiat. A further break below the support line would have put a short entry towards 229.09 fiat, our medium-term downside target. In this case, our stop loss would be placed near 230.99 fiat.
We will try not to place any further shorts should the bearish action continue.