ForexMinute.com — Last 24 hours in the cryptocurrency trade has shown Bitcoin respecting the range we discussed in our previous analysis. The price action is displaying volatility but has unable to establish any breakout towards either sides. It is meanwhile opening some decent trading opportunities for day traders, respecting our intraday breakout strategy until now. In today’s analysis, we will again be discussing the potentially profitable levels to stay risk-free and earn back a decent return on small trades. Let’s have the look at the chart first:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin maintaining its prevailing bullish bias, for it is trending above its 50, 100 and 200H SMAs and the RSI is going sideways between 52 and 57 — respecting the overall selling/buying neutrality. The MACD indicator has also immersed into its signal curve, while maintaining the positive bias. All these technical indicators points to a near-term sideways momentum, awaiting breakout.
We will therefore be keeping our risk levels towards both the sides, ensuring to exit the market if any of the preset in-term lines become invalidated. At first, we would be entering a long towards the current in-term resistance line near 273.99 while keeping the stop loss near 267.67 fiat. This is comparatively a less riskier trade and ensures a minimum chop off in case of the price goes south. Our next long position will arrive only when Bitcoin invalidates the the current in-term resistance line and goes on testing the primary upside target near 278.64. In this trade, our stop loss will accordingly shift to a dollar less than our entry position.
Nevertheless, the chances of a fall back is equally high. We will therefore be placing a short towards 266.06 in case Bitcoin retraces from the intraday peak. On this trade, our stop loss will be placed near 277.03 fiat to avoid being chopped in case of a bias reversal. Nonetheless, an extended downside correction will open some decent short opportunities towards the in-term support line near 264.84 fiat. While playing this position, our stop loss will remain the same.
Have a happy trade, see you all tomorrow.