ForexMinute.com — Last 24 hours in the cryptocurrency saw Bitcoin price trending sideways on a weak rope, offering enough bad signs for a volatile bearish actions. And as we enter another day of trading, what’s feared has come true: the Bitcoin price fell by 1.5%, though managing to stay above the support line we discussed in our previous analysis. Nonetheless, the downward action is looking volatile, and might continue further as we head into the US session in next few hours.
Our intraday breakout strategy, meanwhile, has placed the necessary risk levels at place to avoid any fall back during the volatile movements. Have a look at the chart below to study them further:
Bitcoin 4H Chart
As you see the 4H BitFinex above, Bitcoin is on a continuous decline since establishing this month’s high near 248.02 fiat. We have meanwhile dipped into a new range, where 234.74 fiat is serving as the in-term resistance, and 226.10 fiat as the in-term support level. These are the levels we’ll watching today for our intraday breakout analysis.
We are also considering the expressions of our technical indicators. The price action, as you can clearly see, has brought Bitcoin below the 50, 100 and 200H SMAs, while the 4H RSI has also crashed toward 30 — a strong selling area. The MACD indicator has also dipped inside the negative region, following the selling action in recent days.
Naturally, our first target is located in south. At first, we are watching Bitcoin to hold itself above 227.21 fiat, a level that has stopped price’s bear run many times in past. In case this level looks to be broken, we’ll enter a short towards the in-term support level, while maintaining our stop loss near near the same 227.21 fiat.
A further downside action would have us put a short position towards 224.55 fiat, our medium-term downside target. In this case, our stop loss would be maintained near 226.98 fiat to get us out of the market in case the bias is reversed.
Looking at the other way around, a bounce back towards north would bring our temporary resistance level near 232.24 fiat back in sight. Its an attractive long position, but we would try to maintain our stop loss near 228.00 fiat to get out of the market on a small loss, in case the bearish action persists. On the other hand, a break above 232.24 would put us long towards the in-term resistance level.