ForexMinute.com — The past few days have been nothing less than a roller-coaster ride for cryptocurrency market. On Friday, Bitcoin value finally broke from its prevailing consolidation range and violently surged throughout the weekend, hitting the intra-week peak of 268. However, it met with a similar volatility to the downside after the news of Bitcoin exchange Bter being hacked hit the wires. This ultimately brought price to as low as 227 yesterday, from where price is attempting a slow yet significant rebound.
BTC/USD 4H BitFinex Chart
As you can see the chart above, the Bitcoin value in past few hours is attempting a bullish correction towards the previously broken resistance level around 248. But just before that, we are seeing a Cup and Handle formation — a little incorrect due to lack of proper drawing tool. But you can imagine how longer the U is, followed by a handle that is clearly displaying a strong selling pressure. This overall explains the Bitcoin’s tendency to move downwards.
The price, despite displaying smaller green candles in past few hours, still is trending in a stronger bearish bias, with short targets as low as 224. There have been no fundamentals that could explain why price is trending upward for near-term, especially in current pessimistic scenario led by the Bter hack of 7,170 BTC. This looks more like emotional trades to us, which may retreat back towards south if being pressurized by the upcoming resistance levels — next being at 240.
The RSI is looking neutral meanwhile, just shy of 50. Traders could play long once it crosses above 55.
While Bitcoin continues to struggle in maintaining a bull run, altcoins are also finding it difficult to stay stable under the master’s influence. In over the last 24 hours, altcoins like Litecoin and Dogecoin has each fallen 7 and 4%, respectively. Meanwhile, Darkcoin seems to far optimistic with all the ongoing developments. The anonymous cryptocurrency has surged around 5% in over the last 24 hours.