ForexMinute.com — Last 24 hours in the cryptocurrency market displayed Bitcoin in a near-term sellout, which ultimately brought its value below the previous range support level near 236.94. But as we predicted in our previous analysis, a run down below the aforementioned level was to validate 235.54 as the next downside risk that could have opened some decent short opportunities for traders. We hope you followed the advice and took a nice return out of the trade.
Let us now look at the current price levels:
Bitcoin 4H Chart
The 4H BitFinex chart currently shows Bitcoin in a non-serious selling area. The price is stated below the 50-H and 100-H SMA, while, at the same time, is above the 200-SMA — respecting the overall bullish bias in the market. The 4H RSI has its head towards north, indicating some notable selling during the European session. It though is below 50 — establishing the selling pressure in the market. The MACD indicator is trending inside a negative territory as well. The technical indicators, on whole, are suggesting a near-term bearish bias in the market.
It certainly hints us to keep focussing on the downside risks, even if the last few hours has displayed some good buying signals. As you can see the chart above, the new range is bringing our focus to the updated in-term support and resistance levels near 235.01 and 236.74, respectively.
In case the current correction extends, Bitcoin would be targeting to break above the aforementioned upside level. Entering the market slightly above 236.74 line by setting targets towards the primary upside risk near 238.62 would ensure some decent returns. However, do not forget to place your stop loss below the in-term resistance level in case of bias invalidation.
Conversely, a run down towards the current range support — 235.01 — would open some decent short positions. A close below this level would certainly bring the primary downside risk near 233.16 back in sight. Here, placing your stop loss somewhere above the range support will ensure a timely exit in case the price bounces back.