ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin failing to form higher highs on a 4H timeframe, while trending sluggishly between the predefined trading parameter — minus the volatility. At this point of time, the traders are visibly waiting for price to break below the support line to establish breakout, and buy from the dips.
Nonetheless, we have already established our risk parameters amid the current bias conflict. As you can read our previous analysis, these levels have proven to be true but are still awaiting further validation from a breakout. Let’s look at the chart to understand it better:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a near-term bias conflict, while maintaining the long-term bullish bias. The price, as you can see, is clearly trending below the 50- and 100-H SMAs while, at the same time, is above the 200H SMA. The 4H RSI is currently near 45 and the MACD indicator is below its normal line — both indicating a huge selling pressure in the market. All these technical indicators though point towards a bearish bias, but is balanced by the low volatility in the market. Even a little buyout can revert the price action towards testing the first in-sight upside level.
As you can see the chart, we are still in the range we drew before the weekend, with in-term support being near 273.86 fiat and the in-term resistance level near 284.86 fiat. These are the same levels we will watching out today to place our risk assessment strategy.
At first, we will be looking price to uphold is support line — which it is perfectly doing at press time — and attempt an aggressive bounce back towards the in-term resistance level near 294.86 fiat. Only a break above the resistance line will validate the upcoming of a near-term bearish bias, thereby opening some decent long positions towards the primary upside target near 289.00 fiat. On these trades, it would be recommendable to place the stop loss near 283.44 fiat.
Conversely, a run towards the in-term support line near 273.86 will bring 264.38 fiat back in sight. If price breaks below 273, we will be entering short towards our intraday low while keeping the stop loss near 276.18 to avoid being chopped off in case of a bias reversal.