ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin failing to extend its previous uptrend. Instead, the price action first moved sideways in a restricted trading range, and later fell prey to huge sellouts.
A larger part of the previous rally was influenced by the Fed’s meeting last week. And as we had discussed in our previous analysis, the Fed’s decision to not increase the interest rates indeed brought a bullish period into the Bitcoin market. Though as it seems, the rally was a farce.
We, on the other hand, had made sure to position our stop losses on right places, so as to avoid any kind of volatile price behavior in the market. As a part of our intraday breakout strategy, we managed to exit the trades on time on small losses.
As we now enter another day of trading, the technical landscape of the Bitcoin market has changed. What are the levels we are watching for today’s intraday breakout analysis? Let’s check out:
Bitcoin 4H Chart
As we can see the 4H BitFinex chart, the price has invalidated the previous in-term support line while undergoing a crash. The red line we drew as our range bottom in previous analysis meanwhile has held Bitcoin pretty well. The upside action, however, is minimal at this point and the price is looking to set new upside targets, while flooring itself near the red line (near 227.16).
We can safely assume the red line as our current in-term support level, while the in-term resistance level is situated near 229.09 fiat. This is the range we are watching today.
At first, we are definitely looking for price to extend its bearish action further. If it happens so, we would be waiting for price to break below the in-term support to validate 226.08 fiat as our medium-term downside target. On this trade, our stop loss will stay near 227.77 fiat to get us out of trade in case of a bias reversal.
Looking the other way, a bounce back from 227.18 fiat would bring our in-term resistance back in sight. We will however excuse ourselves from placing any long position at this time, considering the overall bearish bias. Our upside positions will be place only once the price invalidates 229.09 fiat. It is then we would place a long towards 230.36, our medium upside target, while maintaining our stop loss near 228.28 fiat.