ForexMinute.com — Last 24 hours in the cryptocurrency market encountered Bitcoin losing its upside momentum and crashing abruptly below the previous in-term support level. The crash appeared despite the fact that it was Memorial Day in the US and UK — means a holiday for traders as well. But as it looks, no rules apply on Bitcoin after all.
Let’s have a detailed look at the today’s charts.
Bitcoin 4H Chart
The 4H BitFinex Bitcoin chart is showing a near-term correction taking place after forming a disturbing red candle. The price meanwhile is just above the 50-H and 200-H SMA, while the 4H RSI trending between 45 and 50 — indicating a mild upside pressure in the market. The MACD blue curve, on the other hand, has gone below the signal curve — but above the normal line, further confirming the maintenance of an upside bias.
We can therefore update our trading levels by keeping the in-term support near 236.71 and resistance at 238.57. If Bitcoin continues to respect the current correction, it would be flirting with the in-term resistance mentioned before. As we are trading just above the in-term support, some good trading opportunities toward upside levels are open.
If the current resistance level is broke, the price would be looking to break above the primary upside target — situated near 240.72. The constant uptrend will also validate the secondary upside target near 242.13. A long entry towards the secondary target seems feasible if the primary level is breached. Though, make sure to place your stop losses near 241 if the bias gets invalidated.
In case if Bitcoin manages to surpass even the secondary upside target, it would simply bring the intraday high — near 243.00 — back in sight. If you plan to go long on it, it would be advisable to place your stop loss just above 242.13 to ensure a timely exit.
Speaking about the downside risks, the in-term support near 236.71 is still valid if Bitcoin fails to breach 238.57. The bounce back will however open some decent short opportunities for traders with initial downside target near 237.26.