ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin heading higher upon invalidating key resistance targets. The price action was meanwhile choppier than ever and offered us with some really attractive intraday positions.
The range we discussed in our previous analysis was naturally rejected by the sudden upside action. However, we were able to take out an attractive profit from our long position towards the previous medium-term upside target near 234 fiat. As we now head into the European session, there are some revised levels we’ll have to look for, considering how a bullish rally could transform into a manipulated crash. Look further to know more:
Bitcoin 4H Chart
The upside momentum has brought us into a new range, where 233.64 fiat is serving as in-term support and 236.96 fiat as in-term resistance level. Due to the recent volatility, both of these levels are still weak. So it is important for us to apply our intraday risk levels at place to get in and out of the market without negating our return opportunities.
As you see the 4H BitFinex chart above, we are trading in the midst of a relatively wider range. At present, we are just shy of in-term resistance, so we will look to enter a long position towards our medium-term upside target near 238.39 fiat by keeping our stop loss near 236.22 fiat. It will help us skip the trade in case of a bias reversal.
Looking at other way, a correction from resistance would have us put a short trade towards our temporary support line near 236.16 fiat. A further break from this level would have us put a natural short towards in-term support. Here, a stop loss near 233.64 will keep things attractive from a risk assessment angle.
If we break below the in-term support line, we would enter a short trade towards 232.95 as our medium-term downside target. On this trade, our stop loss would be maintained at 234.25 fiat.