ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin consolidating sideways within a strictly narrowed range. Compared to the last week’s volatility, this seems like a resting period for traders amid uncertainties related to the new Bitcoin client and global stock market’s health.
We are, therefore, trading in a relatively tight range. The price action is sparing us no opportunity to widen our parameters and try out some intra-range trading. As we now head into yet another trading session, our parameters have been revised to indicate new breakout levels, where 237.53 fiat is serving as the current in-term resistance and 221.23 fiat as the in-term support level. Let’s have a look:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a medium-term bearish bias, for the price is trending a way too below the 100 and 200H SMAs, and is closely testing the 50H one at press time. The 4H RSI, meanwhile, is at 45 which signifies a strong selling area. The MACD indicator, while maintaining its prevailing positive bias, has dipped below the signal curve.
Considering the technical indicators, we can first believe Bitcoin to attempt a sellout by the hands of shaky traders. In this scenario, we will first see the price action taking a dip towards the in-term support and validating 215.38 fiat as our immediate medium-term downside target. On this trade, our stop loss would remain to near 223.98 fiat to get us out of trade in case of a bias reversal.
Conversely, a run towards the in-term resistance level would have us put a long towards 241.33 s our immediate upside target. On this trade, our stop loss would be at 236.14 fiat to maintain our positive reward profile.