ForexMinute.com — It has been a crazily bullish week since we last penned down a Bitcoin analysis. The price has crossed the so-called tropospheric levels and is now striving to enter the moon territory, thanks to an aggressive buyout period.
Like every time, many reasons have erupted to justify the recent $100 Bitcoin rally. Some believe it is due to the Europe’s recent VAT exemption on Bitcoin that has boosted the digital currency’s demand around the globe; while there are also theories that suggest Chinese traders to be among the top Bitcoin pumpers thanks to the growing currency control in the country. Overall, Bitcoin is having a nice time with bulls.
Let’s have an elaborated view over the recent price action with the 4H BitFinex chart below:
Bitcoin 4H Chart
Due to the recent volatile rally, we are somewhat forced to mix our intrarange strategy with our standard breakout strategy. As you can see, we have recently tested 384.12 fiat as our intraday high, but have then corrected a little towards 360.98 fiat. In these times, we have revised our range, where 354.81 fiat is serving as in-term support and 384.12 as in-term resistance level. These are the two levels we will watching today.
We will first wait for price to break above the in-term resistance line to validate 400.00 as our medium-term upside target, with 411.69 fiat being an immediate primary long position should the rally extends further. On these trades, a stop loss somewhere near 377.49 fiat would ensure to get us out of trade in case of bearish corrections.
Coming to our intrarange perspective, a pullback from the in-term resistance would have us put a short towards in-term support (354.81 fiat) with stop loss just a little above 384.12 fiat.
A break below in-term support will validate 343.35 as our immediate downside target. On this trade, our stop loss would be near 360.73 fiat.