ForexMinute.com — After displaying a disappointing price action at the end of the last week, Bitcoin value attempted a successful bullish correction throughout the gone weekend. A majority of this turnaround sentiment was incubated by Greece, whose economy continued to suffer major blows on international levels, and added more confidence to a non-government digital currency like Bitcoin.
And as we can see, the Bitcoin literally broke above important upside levels and is still hinting to extend the prevailing uptrend, as the Greek sentiment hinting to stay as well. We will now be watching the innumerable trading opportunities that the current price action presents in its volatile form. Let’s have a look:
Bitcoin 4H Chart
The 4H BitFinex chart above clearly displays Bitcoin in a strong bullish area, where price is a way too above its 50, 100 and 200H SMAs and the 4H RSI is flirting with the overbought threshold line near 70. The MACD indicator meanwhile has toppled above its signal curve, while maintaining its prevailing positive bias. The technical indicators jointly indicate a strong upside pressure for next few hours, with certain levels needed to be broken to extend the bias further. Let’s check out these levels.
As you can see chart, we are currently placed between the current in-term support line near 271.57 and resistance line near the intraday high 276.71. For today, we will be watching these levels to further strategize our trading positions.
At first, we will be looking towards price to retest the intraday high near 276.71 fiat, while our long position will accordingly be on the same line. A break above this line will validate 280 as our primary upside target. We will though be placing our stop loss near 272.60 to make sure a safe exit in case of a bias reversal. Due to a volatile rally, a correction is quite evident, so we will recommend our readers to avoid playing any speculative trades.
Conversely, a run down towards the in-support line near 271.57 opens up some really attractive short positions. However, a break below the current base will validate 266.90 as the primary downside target. We will be entering this position only upon notice a lack of trading volume near the 271 mark. Meanwhile, we will be placing our short loss near 272.62 to exit the market on the first sign of a bounce back.