ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin respecting its prevailing trading range — between the temporary support and resistant near 222.59 and 226.03, respectively. The erratic price action also continued to open some decent trading opportunities, despite establishing a near-term conflict in bias. Let’s have a detailed understanding:
Bitcoin 4H Chart
The 4H BitFinex chart displays Bitcoin in a medium-term bearish bias, where the price is still falling below the 50-, 100-, and 200-H SMA, while the 4H RSI is between 40 and 45 — both indicating a reasonable selling pressure. In the meantime, we also have the MACD indicator that has taken a step above the saffron signal line, but is still lying inside a negative area.
In a way, the price action as of now is ideal for day traders, for it is absent of any malicious volatility. However, we must warn traders to place their bets cautiously during the weekend, as this period often turns out to be surprising for Bitcoin market. We have therefore drawn some upside and downside risk levels to ensure you are taken out of the market at the right time, without being incurred by huge losses.
As we can look at the chart above, Bitcoin seems to have established a fresh temporary resistance area around 225.51-226.16 range. The price has lately been reversed from these levels to retest a similar pressure — though downside — at 222.72 fiat. Nevertheless, our in-term support and resistance levels still remain to be near 220.54 and 226.66, respectively.
A run towards the range resistance therefore validates the primary upside target towards 233.04. Traders are recommended to take benefits from this upside opportunity. But also remember to place your stop loss somewhere around 225 to ensure a timely exit in case the upside bias returns a NULL command.
Looking at the other way around, a fall towards 222.65 would itself open short opportunities towards 220.54 — a strong support level. However, we would rather want you to wait for an extended downside momentum — below 220.54 — to validate 218.36 as the primary target. We would therefore recommend you to keep your stop loss near 221.00 to at least ensure a little profit.