Cryptocurrency Trading News: Bitcoin Reattempting Upside Correction

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ForexMinute.com — Last 24 hours in the cryptocurrency market encountered Bitcoin forming a Head and Shoulder pattern, once again reclaiming 253 and 260 as its key channel support and resistance level, respectively.

BTC/USD Bitcoin 4H BitFinex Chart

Bitcoin USD charts April 7 2015

As you can see the chart above, the Bitcoin price is currently trending inside a neutral bias, for it is unable to validate any specific bias. The price is clearly above its 50- and 100-H MA, though not by much margins; the RSI is near 50, strictly a neutral area. At the same time, the MACD blue curve is trending inside a positive territory, while staying below the saffron signal curve, indicate a near-term selling pressure.

At this point of time, it is important to notice the head and shoulder pattern formed during the April 6th trading session. The Bitcoin price has been briefly pulled back from the strong upside resistance near 260. Coincidentally, it is the same point which started March’s volatile rally towards the 290s. On the downside, the support near 253 is holding strong as well.

Trade-wise, we believe that if traders set their stop losses near the aforesaid support and resistance levels, they are likely to earn back a decent risk reward in times of upside/downside movements. However, please look out for the breakouts towards either side, setting a similar stop loss near 250 and 262 (downside and upside movement, respectively) would ensure a timely exit.