ForexMinute.com — Last few days in the cryptocurrency market encountered Bitcoin regaining its lost upside momentum for a brief time. However, the price action tapered in the last 24 hours upon forming higher highs near 232. It further formed a newer consolidation parameters after falling a little. We will going to discuss these levels in the analysis below.
Bitcoin 4H Chart
As clearly visible in the 4H BitFinex chart above, the Bitcoin price is currently serving a new consolidation channel, with in-term support and resistance lying near 221 and 227 respectively. Coincidentally, 227 is also the 50-H SMA here, which the price is indeed looking to break for establishing a near-term upside bias towards 232. The RSI meanwhile is near 45, a selling zone clearly. The MACD, on the other hand, is just shy from the normal line, though still in a negative territory. It overall indicates a downside momentum, which will soon carry the face of a bearish bias, until the in-term support is broken.
Which brings us to today’s risk assessment. As you can see in the chart, the Bitcoin price is clearly moving towards south, therefore bringing the in-term support near 221 in sight. In case the downside movement extends, the initial target would move on to 218. Therefore, it would be better to place you stop loss near 222 to ensure a timely exit.
Conversely, if Bitcoin attempts a bounce back from either of the aforementioned downside levels, it will validate 227 as an immediate in-term resistance, with upside risk towards 230, the psychological resistance level. Here, setting your stop somewhere near 225 will ensure a decent risk reward.