ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin losing its bearish sheen after extending its gain by seven more dollars. It is indeed a break from the lazy sideways trend market encountered for more than a week.
The said upside action, meanwhile, also helped us taking out a decent profit off our range trade. The levels we discussed in our previous analysis held pretty well, and continues to offer insights to our intraday breakout strategy for today. Have a look:
Bitcoin 4H Chart
In the 4h BitFinex chart above, we can very well see price in the range we discussed yesterday — serving 247.12 fiat as the in-term resistance, and 239.14 fiat as the in-term support level. The chart also shows the change in the mood of technical indicators, which are now looking more confident towards the bulls.
For instance, the price is now trending above the 50, 100 and 200H SMAs, while the 4H RSI has surged inside the oversold region, awaiting correction. The MACD indicator, on the other hand, has been maintaining its positive bias well enough. All these indicator marks the end of bearish bias — at least for near-term.
With that said, our intraday breakout strategy will definitely be waiting for price to cross above the in-term resistance level. An action as such would validate 250.00 fiat as our medium-term upside target, while the primary one would be near 254.17 fiat. On both these trades, we will ensure to maintain our stop loss near 245.64 fiat in order to get out of the trade, if bias is reversed.
We would though be expecting the break to be decisive enough to fuel the prevailing uptrend.
Looking at the other way around, a run towards the in-term support level would have put a short position towards 234.74 fiat, our immediate downside target. A further break from the said target would have put a similar short, but towards 226.76 fiat, which is our range bottom. On all these trades, our stop loss would be maintained near 240.22 fiat.
Have a happy trading.