ForexMinute.com — It has been an outrightly bearish week for Bitcoin after an overly impressive bull trend. It seems that the hype surrounding the previous rally is finally coming to eat dust as Bitcoin is now advancing towards a not-so-bad $300 support. The question at this hour remain the same: will the downside momentum continue or Bitcoin will bounce back to establish new intraday highs? Let’s check out!
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a serious bearish bias, where price has dropped below its 50 and 100H SMAs, while flirting with the 200H one at the same time. The MACD indicator is outrightly suggesting a selling scenario, while the RSI has dropped down to 34 — both awaiting recovery.
The recent price action has further kept us from relying much on our breakout strategy. We however believe intrarange trading to be an ideal way of accumulating profits at this point of time. As you can see the chart above, Bitcoin price has shifted inside a new range where 309.39 fiat is serving as the new in-term support and 344.35 fiat as in-term resistance level. These are the levels we are watching today for our intrarange trading strategy.
With this said, we will first be looking to place a short position towards 314.73 fiat, a level which has been tested successfully twice as support in the last 24 hours. In case this level is proven to be invalidated, we will enter a similar position towards our in-term support while establishing our stop loss level near 322.62 fiat.
In case the selling pressure continues to grow, we will bring our intraday breakout strategy in play and would place a short towards 300 fiat while sighting 294 fiat as our immediate downside target. On this trade, our stop loss would be near 303.37 fiat.
Looking the other way around, a bounce back from in-term support or 300 fiat would influence us to put a long position towards 334.69 fiat, an intrarange upside target. A further break would have put the same position towards 344.35 fiat.