ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin finally extending its upside action, and validating the medium-term upside target we discussed in our previous analysis. The bull run, however, was short lived as there was a huge selling pressure near the intraday high, which ultimately resulted into a dump.
As we now enter another day of trading, we are seeing Bitcoin in a new range, where 268.69 is serving as the new in-term support, and 273.54 as the new in-term resistance level. The support level is still weak and any extra selling pressure near this point can take us to the previous 260.47-268.76 range. Let’s have a look:
Bitcoin 4H Chart
The 4H BitFinex chart displays Bitcoin in a strong bearish bias, for the price is still below the 50, 100 and 200H SMAs, and the 4H RSI is below 50. The MACD indicator, on the other hand, is still maintaining its negative bias, but is trending above the signal curve.
The quick bearish correction upon the recent pump has further pushed Bitcoin into a selling channel where the current in-term support is looking very weak. If this level is broken, it would has us put a short near 265.75 as our medium-term downside target. On this trade, our stop loss will be near 269.46 to have us exit the market in case the price bounces back. In case 265.75 is breached, we will enter a short once again, but this time towards 260.47 — the last week’s bottom.
Conversely, if a price manages to hold itself above the support level, it would be attempting a short rally towards the nearest temporary target near 271.86 fiat. A further break, and a long towards the in-term resistance would put us on a profitable position. A stop loss, in this case, would be near 267.31 fiat.