Cryptocurrency Trading News: Bitcoin Retraces after Strong Rally

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ForexMinute.com — Last 48 hours in the cryptocurrency market saw Bitcoin riding high on Greece announcement. The price breached the tight upside levels right in parallel with Greece’s decision to exit the European Union. The rally however could be a hype, which might face an equally strong retracement. We would therefore be reminding our readers with certain risk strategies to avoid any chop off during their trades. Let’s have a look:

Bitcoin 4H Chart

Cryptocurrency Trading News: Bitcoin Retraces after Strong Rally

The 4H BitFinex chart above displays Bitcoin in a strong bullish bias. Soon upon trending upwards, the price has crossed above its 50, 100 and 200H SMAs, and the RSI has also topped above 60. In the meantime, the MACD blue curve has also entered the positive territory, and is also trending slightly above its signal curve. The near-term dynamics are therefore bullish as well.

As we can also see, Bitcoin has recently retraced after establishing 251.93 as its new in-term resistance line. The price is now testing 247.79 as its in-term support level, with an interim resistance/support line near 249.67. Today, we will be checking these levels to mark our entry/exit positions.

A run towards 251.93 (at max 252.30) certainly opens some decent long positions, especially when Bitcoin manages to breach this level. If it does so, the price action would simply validate 254.24 as its primary upside target. A long position towards this level would therefore be profitable; however, don’t forget to place your stop loss near 249.67 to exit the market, in case the bias is reversed.

Conversely, if Bitcoin extends its pullback from intraday high, it would sincerely be attempting to validate 245.06 as its primary downside target. A short entry towards this line would ensure some great profits but, at the same time, it would be recommended to place your stop loss at the same interim level — 249.67 — to avoid being chopped off in case of a bias reversal.