ForexMinute.com — The gone weekend in the cryptocurrency market saw Bitcoin going through a volatile downward trend. The price action, as we expected in our previous analysis, attempted a clear breakout and, in the process, broke many key support levels.
As Bitcoin plunged, we were able to take small profit out of our short towards the previous in-term support line near 276.15 (now invalidated). However, due to the extreme volatility, we excused ourselves from targeting any further downside levels, until a definite bottom gets established.
We are now presented with an altogether different range, with price forming a bear flag and hinting to extend its prevailing downside momentum. What are our levels for today? Let’s check out our intraday breakout strategy as follows:
Bitcoin 4H Chart
As we can see price retreating after establishing a near-term bottom near 260.47 fiat, we will be going to consider it as our current in-term support level; while, at the same time, 268.76 fiat will serve as our current in-term resistance level. These are the levels we’ll be watching out for the rest of the day.
At first, we will be looking towards Bitcoin to cross above the in-term resistance level to validate 271.80 fiat as our medium-term upside target. A further break, and we’ll enter a long towards 276.15 fiat. On both these trades, our stop loss will remain to be near 267.44 to help us exit the trade in case of a bias reversal.
Looking at the other way around, a run below the in-term support level will have us put a short towards 256.46 fiat, which is our current primary downside target. We will excuse ourselves from placing any more trades, if Bitcoin breaks further below.