ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin extending its bearish movements. The downside price action is reported to have arrived with the launch of Bitcoin XT — a highly criticized and controversial Bitcoin fork, orchestrated by Gavin Andresen and Mike Hearn.
While the action has been volatile, but has still offered us enough opportunities to implement our intraday breakout strategies. As indicated in our previous analysis, a short towards the ‘now-invalidated’ in-term support line undoubtedly brought some attractive profit to our trade. Though, we didn’t try to put any further trades, considering the bad fundamental aspects of the Bitcoin market. These sentiments remain to be true in our today’s intraday breakout strategy.
With that said, what are are ideal positions for today? And what are the levels we’ll be looking for? Let’s have a look:
Bitcoin 4H Chart
As you can see the 4H BitFinex chart above, Bitcoin has clearly broken below the previous in-term support line, and is now sighting the next one near 252.32 fiat. Similarly, our in-term resistance level has been revised to 256.47 fiat. These are levels we’ll keeping our eyes on for the rest of the day.
At first, we will look for a normal bear flag, similar to what we saw during the August 16th trading session. This little push towards north could either be repelled by the in-term resistance, or will extend. Our long entry will be placed only when the price actions goes above 256.47 to validate 260.47 fiat as our immediate upside target. On this position, our stop loss will be just below the resistance line to help us exit the trade in case of a reverse action.
Similarly, a pullback from the in-term resistance line will have us put a short towards 254.00 fiat, our medium-term downside target. A further break, and we’ll put the same position towards the in-term support line. On these trades, our stop loss will be maintained near 257.08 fiat.