Cryptocurrency Trading News: Bitcoin Sinks, Forms New Support

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ForexMinute.com — The gone weekend in the cryptocurrency market saw Bitcoin dipping further into the bearish channel after breaking below its previous in-term support line. Despite the overall downside volatility, the price action did presented us with some really attractive trades — just as we predicted in our previous intraday breakout strategy.

Cryptocurrency Trading News: Bitcoin Sinks, Forms New Support

As you can see the 4H BitFinex chart above, we did get a strong reversal from the prevailing downside momentum. We, therefore, are now in process of serving 283.01 fiat as our in-term resistance level, while respecting 275.71 fiat as our in-term support level. As we can further check, the price is literally attempting to extend its bullish correction as of this moment, for it has its head above the in-term resistance line. We would soon be discussing the outcomes of this price action in the latter part of this article.

For now, it would be satisfactory to see that we are, in fact, getting some upside volatility (despite the occasional hiccups). Having said so, we will first be looking for Bitcoin to stay above the in-term resistance level, only to validate 284.33 fiat as our medium-term upside target, with further sights towards 286.13 fiat. On this trade, our stop loss would be near 281.39 fiat in order to ensure us a timely exit if the price correction doesn’t extend further.

Conversely, a run towards the in-term resistance level would have us put a short towards the said line. We would once again be looking to place a same trade towards 272.04 fiat if Bitcoin dips below 275.71 fiat. On the latter trade, our stop loss would be near 276.84 fiat.

Speaking further about technicalities, the Bitcoin price is well below its 50 and 100H SMAs, while testing the latter at press time. The 4H RSI, meanwhile, is sighting to cross above 50 upon recent buying signals. The MACD indicator although is maintaining its prevailing negative bias as of now. All these technical indicators point to a near-term bearish bias in the Bitcoin market.