ForexMinute.com — Last 48 hours in the cryptocurrency market was a mixed bag of volatile downside and upside movements. At the start of the weekend, Bitcoin faced a notable $4 drop due to prevailing selling pressure in the market. But despite of that, the price managed to hold its ground near the temporary support level, and attempted a brief correction towards the range resistance.
As we enter another day of trading, Bitcoin is holding its prevailing trading range, maintaining the levels we had discussed in our Friday’s analysis. Let’s have a look:
Bitcoin 4H Chart
Due to an overlong stability inside a widened trading parameter, the 50-H SMA trendline has adjusted below the price. However, the price continues to stay below the 100- and 200-H SMA, while the 4H RSI has broken above 50 — indicating a near-term buying pressure in the market. In the meantime, the MACD blue curve is still trending below the normal line, but has made notable improvements in last two days. The technical indicators overall indicate a near-term bullish bias in the market. The overall bias though continue to be bearish.
We are therefore drawing some key levels that would offer some decent profit making opportunities for the day traders. As the near-term bias is upside, we will be watching 226.66 as our in-term resistance, which has been broken occasionally in past few days. If we get a break above this level, we would looking to place our longs towards the newly formed primary upside target near 229.09 fiat. Similarly, breaking above the latter will put our next target towards 233.04 fiat. Here we will advise traders to place their stop loss near the temporary support level 222.20 fiat in case of bias reversal.
Looking at the other way, a run towards the temporary support will validate 220.54 as the in-term support level. A quick recovery from 222.20 however will open decent long opportunities towards 225.90 fiat. In case of a further downside momentum, a similar short opportunity will emerge towards 220.54. Traders are recommended to place their stop loss below 221.00 if they are planning to play long, in case the bias extends. This will further open the aforementioned short opportunity towards the in-term support. In this case, keep your stop loss above 221.00.