ForexMinute.com — The Greece hype seemed to have been cooling down after all, for the Bitcoin value has finally established a temporary bear trendline and is now descending back amid a near-term selling pressure. The correction is however weaker than expected, for the price is now held above some really strong downside levels. In today’s analysis, we will be looking at these levels, followed by their tendency to create some attractive short/long positions. Here it is:
Bitcoin 4H Chart
Despite the recent pullback, Bitcoin is maintaining its prevailing bullish bias, for the price is still trending above the 50, 100 and 200H SMA and the RSI is just shy of touching 60. The MACD indicator, though dipped below the signal curve, is still inside a positive territory. The technical indicators jointly indicate a reasonable buying pressure in the market.
We are therefore hoping Bitcoin to retest the the current range resistance near 261.54, a break above which will validate 266.90 as the primary upside target. We will be placing a long position towards the primary target only when price crosses above the range line. Doing so, our stop loss will be placed near 260.68 to ensure a timely exit in case of a bias reversal.
A pullback meanwhile will be expected from 261.54, an action that will put us short towards the temporary support line near 256.44. This position will ensure only a little profit but, at the same time, will protect traders from being chopped off in case of a huge downside volatility. But even then you wish to play such a gamble, we would recommend you to place your short position towards the range support near 254.96, but with a stop loss near the temp line to exit the market in case of a bounce back.