Cryptocurrency Trading News: Bitcoin Correction Extends, Maintaining Bullish Bias

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ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin continuing to its downwards momentum after establishing an intraday peak near 262.35. The price action clearly displayed a lost Greek hype, as we predicted in many of our analysis from the last week, but still never went too volatile — not a dump-like situation, definitely. We are therefore seeing an equally strong support area, holding the price from falling into a serious bearish channel, and maintaining the prevailing bullish bias. Let’s look further to know more:

Bitcoin 4H Chart

Cryptocurrency Trading News: Bitcoin Correction Extends, Maintaining Bullish Bias

The 4H BitFinex chart above displays Bitcoin in a rather weak bullish bias, for the price is trending only inches above its 50H SMA. The 4H RSI, on the other hand, is currently near 49-51 range, while the MACD indicator has crashed right on the normal line. The technical indicators jointly indicates a neutral selling/buying pressure in the Bitcoin market.

Just as we told in our previous analysis, that a break below the then-in-term support line 254.96 was to validate 252.75 as the primary downside target, something similar happened in the past 24 hours. As you can look at the chart above, Bitcoin briefly targeted the 252.75 line on multiple occasions and also hinted to bounce back as well. We hope traders were able to take out some decent profit off this short position.

Today, the new current level we’ll be watching here is 252.75 as the in-term support, while the in-term resistance line will continue to stay near 261.31. If the prevailing correction extends, we would be looking at Bitcoin attempting to break below the in-term support once again. In case it does, it would simply validate 249-250 area as the primary downside target. We will be placing short towards the primary area only when Bitcoin breaks below the in-term line. We will meanwhile be placing our stop loss near 256.00 to exit the market in case of a strong bounce back.

Conversely, a run towards the in-term resistance line would open some decent near-term long positions as well. In case of a bounce back from support line, we would first be placing our long position towards 257.22, while keeping our short loss near just near 254.09 fiat. A run above the said level would bring 261.31 back in sight. While entering long toward this level, our stop would be near 254.91 fiat.