ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin breaking its previously prevailing uptrend to form a corrective wave. The price action — despite being slippery — remained well within the range we discussed in our previous analysis. We had widened out our range yesterday to ensure enough room to dictate our standard intraday strategy. And as it look, it is still in play.
Let’s have a look:
Bitcoin 4H Chart
As we can see the 4H BitFinex chart, the recent price drop is pushing price towards the 50H trendline. The RSI indicator, too, has been losing its bullish sheen from recent hours and has now fallen near 50 — a neutral area. The MACD line meanwhile is looking strong at this point. The technical analysis somewhat suggests a near-term bearish trend in the market.
At this hour, it is important for us to execute our risk assessment exercise to avoid any form of loss should the price reacts volatile. Like yesterday, we are once again looking at 242.99 fiat as our in-term support level; however, we have revised our in-term resistance level to 245.89 fiat for today, considering the choppy price action we have been noticing lately.
With this said, our first downside target, of course, is 242.99. We will wait for Bitcoin to test this level before correcting to the upside. However, at the same time, we would also be placing our short trades towards 242.46 fiat to prepare for any extended downside action. Our stop loss on this trade, meanwhile, would be placed near 243.59 to ensure potential rewards.
Looking the other way, a run towards the current in-term resistance line brings a decent long opportunities for us. If the action promises to more volatile towards the upside, we will put a long trade towards 247.63 fiat as our medium-term upside target. On this trade, our stop loss would remain near 245.44 fiat.