ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin marking a record jump towards August’s peak. It was clearly a move to target the 250s, a range Bitcoin has been unable to touch since the said month.
Interestingly, there is also a good dose of fundamental developments that have pushed Bitcoin’s technical action into a strong bullish area. On Monday, the US Marshals Service has announced that it is auctioning the last remaining Bitcoins belonging to drug marketplace Silk Road. This event has appeared twice in history, and each time, it has pushed value above the then-prevailing resistances. As it looks, something similar is happening even now.
So with this said, we are now entering into European session with mixed hopes of bearish correction and bullish extensions. Let’s have look:
Bitcoin 4H Chart
As you can notice the 4H BitFinex chart above, we are currently in the midst of a new range, with 249.13 fiat, an intraday high, posing as in-term resistance; and 242.99 fiat as a distant in-term support line. This is indeed not a narrow range, thanks to a widened Bollinger Band. Keeping that in mind, we have introduce a middle level — near 245.89 — in between the two said thresholds. As it looks, it will be our immediate target irrespective of the direction of Bitcoin price.
At this hours, the market is simply reacting to the extra uptrend. The price is clearly attempting some weak bearish corrections, which shows the nervousness of traders at this point. We are expecting sell orders that could push price to our intermediate level near 245.89 fiat. It will be a decent target to place your short positions on.
Should the price action shows any sign of extended downside momentum, it marks the end of the prevailing bullish trend. Considering that, a break below 245.89 fiat would have us put a short position towards in-term support near 242.89 fiat. On this trade, we’ll maintain our stop loss near 246.48 in case the bias is reversed.
If we get an upside movement at this point, we will look for a break above in-term resistance near 249.13 fiat. If it happens, we will look towards placing a long trade towards 253.43 fiat, our primary upside target, while maintaining our stop loss near 248.07 fiat.