ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin slipping in the name of correction. It was however a weak attempt — a near-term bearish sentiment — for the price manages to sustain its prevailing upside bias and bounced right back after testing the in-term support line around 264.84. Bitcoin is once again trending upwards, still respecting its trading parameters, looking for breakout.
As we enter the European session, we might see some interesting price action towards the upside levels. Which levels, meanwhile, will we be watching? Let’s check out:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a medium-term bullish bias, awaiting further upside corrections to establish a stronger bias. The price meanwhile is trending above the 50, 100 and 200H SMA, and the RSI is also between 50 and 55 — a neutral area. The MACD indicator has also dipped below its signal curve due to recent selling, but is maintaining the overall positive bias.
We are therefore watching the good-old 264.84 and 271.91 as our in-term support and resistance levels, respectively. Bitcoin is hopeful to bounce between this range for the rest of the day, until provided with an additional breakout push from unknown factors.
At this point of time, we are placing a long position towards the in-term resistance level to ensure a minimal profit in this sluggish bull run. To ensure not being chopped off in case of a bias reversal, we have placed our stop loss near 266.80. But in case the Bitcoin pushes above the 271-mark, we would be placing yet another long position, but this time towards the primary upside target near 271.91 — level that has been tested more than once throughout the last week. Here our stop loss will just some points below our entry position — perhaps, 271.05 if enter above the resistance line.
Conversely, a run towards the in-term support line near 264.84 could validate 261.79 as the primary downside target. It surely seems like a wonderful short position, only if entered upon price breaking below the in-term line. Due to expected volatility at these levels, we will be placing our stop loss near 265.88 to exit the market without chopping our funds much.