ForexMinute.com — Last 24 hours in the cryptocurrency market brought no surprise for Bitcoin, as price continued to display high stability amid low trading volume (very common on weekends). There also seems to be less Bitcoin buyers showing up to establish a volatile correction after last week’s price. It only puts Bitcoin in a bearish place, where further downward levels are likely to be tested in coming hours/days. Let’s have an elaborated look:
Bitcoin 4H Chart
As you can see the 4H BitFinex chart above, the BTCUSD pair is clearly trending below the 50- and 100-H SMA, while the 4H RSI is floating right above 40 — both indicating a near-term bearish bias in the market. It gets further proved with the MACD blue curve that, in the last 24 hours, have stayed inside the negative territory. A lot of this bearish movements could be credited to the lack of trading volume on weekends.
An over stable period however is considered dangerous in the Bitcoin market, for it ends up resulting into a bearish breakout in the end. At this point of time, the downward pressure is highly visible in the market, with Bollinger Bands squeezing in to establish a congested pattern trading. As the oversold-and-bought curves come further near, it can influence shaky hands to exit their positions to buy Bitcoin back at lower levels. We are therefore expecting a downside movement in next few hours/days.
In case it happens, the price will target 235 as its in-term support, with downside risk towards 233. However, if Bitcoin manages to float above the 233-level — like it has in previous days — price can attempt a reversal towards 237, with an interim resistance near 235 fiat. A break below 233 though will extend the bearish bias, bringing in the 200-H SMA in sight (near 232).
In these tight hours, placing any bets can be hurtful. You are advised to hold down your horses until a definite bias is established.