ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin losing its impressive upward momentum, and falling back towards its range support near 245.30 fiat. The pullback however never extended, a reason of which can be a weak dollar. As we enter another day of trading, the price has comfortably returned to the range we anticipated in our previous analysis. Let’s have an elaborated discussion as follows:
Bitcoin 4H Chart
Despite a $10 pullback, the 4H BitFinex chart still shows Bitcoin in a medium-term bullish bias, for the price is still trending a way too above its 50, 100 and 200H SMA. The RSI, as we expected, has also slipped down from the previous overbought zone and is now between 55 and 65. While the MACD indicator is still trending inside a positive territory, but has slipped below the saffron signal curve. This simply indicates a little selling for the next few hours, which might push price towards the current in-term support level near 245.30.
In case Bitcoin runs towards the said level, it would simply validate 242.20 as the primary downside target. We would be hoping to place a short position towards the primary level in case the price breaks below 242.20. In the meantime, we would be placing our stop loss around 243.00 to ensure a timely exit in case of a bias reversal.
However, if the price tends to reverse from the in-term line, a long position towards 252.10 will be an opportunity to chunk out smooth profits. A break above this temporary resistance level would instantly bring 254.30 — our current in-term resistance level — in sight. Whichever long position you wish to place, just make sure to set your stop loss around near 247.00 to avoid being chopped out in case the bias invalidates.