ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin extending its downtrend further amid a low buying period. As we suggested in our previous analysis, the price action did offer us a plentiful of opportunities to draw profits from short trades.
The price is now trending near the support line, while maintaining the range we discussed yesterday (support: 242.99 fiat, resistance: 245.89 fiat). As we now head into another session, lets see how Bitcoin is planning to move today.
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a near-term bullish scenario, for the price is still trending above 50, 100 and 200H SMA curves. The 4H RSI is located near 50 — indicating a neutral selling/buying scenario in the market. The MACD indicator, meanwhile, is still maintaining its positive bias, awaiting a comeback.
With this said, we are either looking at continuation in prevailing downside momentum, or a complete reversal. For obvious reasons, we would first like to maintain our risk strategy to ensure a no-loss day for intraday trades. At first, we will be looking for a break towards in-term support 242.99 fiat to validate 241.37 fiat as our primary downside target. On this trade, our stop loss would be maintained near 243.39 fiat to stay safe during a bas reversal.
Looking the other way, if we bounce from support line, our first intraday long target would be towards 245.18 fiat, only to keep things attractive from a risk management perspective. An extended upside correction would have us put a similar trade towards in-term resistance 245.89 fiat. On this trade, we would place our stop loss just above 245.24 fiat to ensure a timely exit in event of a bias reversal.