ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin reaching to its in-term support level and correcting weakly. There was indeed some upside momentum but its effect couldn’t translate into a breakout, as we anticipated. Nonetheless, the price action provided enough — but not-so-decent — trading opportunities, with minimal entry-exit gaps.
As we enter day of trading, we are now looking at price stacked between the same range, with 284.86 still acting as the current in-term resistance level, and 273.86 as the in-term support one. For today, we will be placing our intraday trading strategy while keeping these levels in mind. Let’s check out the chart first:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin still maintaining its overall bearish bias. The price, as you can notice, is still below its 50H SMA, while is testing the 100H one closely. The 4H RSI meanwhile has improved due to recent weak buyouts, and has surged above 50. The MACD indicator, albeit above its signal curve, is still maintaining the negative bias.
Having explained so, the Bitcoin price action is still prone to face some bearish pressure during the today’s trading session. We will, therefore, be recommending traders to avoid entering on the breakout, for the price is hinting to consolidate sideways.
Which brings us to the levels we’ll be watching out for today. As you can notice the chart, the price is currently in the midst of the aforementioned range. We will be waiting for a break above 284.86 to place our long position towards 292.18 fiat, while maintaining our stop loss near 283.27 fiat. We will avoid to play any tight trades to the upsides, for the price can reverse anytime to invalidate the near-term weak bullish bias.
Conversely, if Bitcoin retaliates from the upside levels, the in-term support level, near 237.86, will once again come in sight. We will be entering short towards this level, while maintaining our stop loss near 275.00 to ensure a positive return, and avoid being chopped off in case the bias extends. A break below the in-term support level will validate 264.39 fiat as our primary downside level.