ForexMinute.com — Bitcoin has continued to rally ahead of its expected resistance levels, and is now sitting above its July’s high — near 295.58 fiat.
Today’s pump adds to an already very bullish momentum, which people believe is due to the increasing institutionalization of Bitcoin trade market. Meanwhile, a majority of bullish volume has noted to be coming from China’s exchanges.
For the last few days, the volatile Bitcoin rally has influenced us to stay off from betting intraday trades. We believe there are lot of long opportunities in current scenario, so we have decided to keep our bets on hold until there comes a brief correction period (as happened in July this year). With this said, what are the levels we are watching for today? Let’s check out:
Bitcoin 4H Chart
As you can see the 4H BitFinex chart above, we are now in the middle of a new range, where 295.58 fiat is serving as an immediate in-term resistance, while 288.09 fiat is serving as in-term support level. If the current rally continues to extends further, we are very hopeful of it to retest the psychological resistance level 300 fiat. It will naturally be our ideal position to partially short our positions (we entered the market near 275 fiat).
At the same time, we will make sure to keep the rest of our holdings as a bait should the rally extends further towards 310 fiat. We won’t be entering any long positions here though.
Looking the other way, a correction from the current in-term resistance would have us wait a little for price to establish a smooth bearish takeover. Considering our overall holdings are still yielding a decent profit, we will wait for price to cross below in-term support to short our positions and enter another short towards 286.10 fiat, our medium-term downside target. On this trade, we will place our stop position near 289.89 fiat.