ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin experiencing a string rally while breaking key resistance levels. However, the price action quickly met a corrective reaction near the intraday high — at $241, following which the market turned choppy.
Our intraday breakout strategy meanwhile helped us getting off the market on a positive return. The levels we had anticipate in our previous analysis stood pretty well, though the unexpected extension of the upside momentum also kept us away from garnering more profits.
As we now enter another day of trading, the range has been changed due to recent bullish action. The upside momentum is looking shaky enough to test the current in-term resistance level, near 240.49 fiat; while 236.96 is holding the corrective action pretty well from recent hours. Apparently, these are the two levels we are watching for today’s intraday breakout strategy. Have a comprehensive look here:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a medium-term bullish bias, for the price is now trending above its 50, 100 and 200H SMAs, while the RSI has also surged to near 55 — both indicating a neutral scenario in the market. The MACD indicator, on the other hand, is maintaining its positive bias, and is further trending above its signal curve, indicating a favorable buying area.
Nonetheless, we must not forget that Bitcoin is currently undergoing bearish correction, and is therefore prone to facing extended downside pressures in next few hours. We would therefore be looking to keep our trades on hold, until price validates/invalidates its in-term support line.
In case Bitcoin breaks below 236.96, we would put a short trade towards 235.87 fiat, our medium-term downside bias. A further corrective action would have us put a similar trade towards 234.64 fiat. On both the trades, our stop loss will be maintained near 237.39 fiat to get us our of the trade in case the bias is reversed.
Seemingly, a bounce back from the in-term support would prove the current price action to be nothing but a bull flag. It means that Bitcoin will once again attempt to break 240.49, only to target the next upside target near 241.43 fiat. Our long trades will follow this theory alongside the price action. However, to maintain our risk strategy, we will enter long only when price crosses above 238. On this trade, our stop loss would be maintained near 237.96 fiat.