ForexMinute.com — Last 24 hours in the cryptocurrency market have been relatively less exciting for Bitcoin. Despite the recent rally, followed by a brief retracement, the price action has failed to form the “M” scenario we were expecting. A part of this uncertainty could also be blamed on the outcome of the recent FOMC meeting, in which Janet Yellen predicted an interest rate hike by coming September. It simply means that the dollar-denominated assets like Bitcoin would see a little-to-moderate drop in their value.
Nonetheless, these events doesn’t leave much for intraday traders like us. Like every time, our focus should be on the near-term profits, considering which we’ll be discussing our breakout strategy for today. Have a look:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a near-term bearish bias, for the RSI and MACD indicators are well within the selling range. At the same time, the price has slipped towards its 50H SMA, while staying notably above the 100 and 200H ones. Nonetheless, the price is still holding above our current in-term support level near 286.13 fiat, while sighting a comeback by crossing above the in-term resistance level near 294.28 fiat. For our today’s intraday breakout strategy, we’ll be checking out these levels.
At first, we will look for Bitcoin breaking above the in-term resistance level to validate 299.11 fiat as our medium-term upside target. A continuation in the presumed upside momentum will further bring 304.20 fiat back in sight. Our long position, however, will stay towards 299.11 in start, while the stop loss on this trade will be near 292.92 fiat to maintain our positive reward profile.
Looking at the other way, a run towards the in-term support level will validate 284.07 as our immediate downside target, ensuring a little profit off our short position. A further breakdown, meanwhile, will validate 281.91 as our primary downside target. On this trade, our stop loss will remain to be near 287.62 fiat to ensure a timely exit in case of a bias reversal.