ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin attempting a clear upside breakout after trending flat for almost a week. As we had predicted in our previous analysis, the price clearly sighted 289-290 area as its primary upside target, and we were, therefore, able to take out a decent profit from our long position.
However, as we enter another day of trading, Bitcoin seems to be in a corrective mode where it is opening some pretty attractive short opportunities. So what the are the levels we’ll be watching for today? Let’s check out:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a near-term bullish bias, for the price is currently trending above its 50, 100 and 200H SMAs and the RSI, too, has entered into a buying territory. The MACD indicator has also shifted gears and is now trending inside a positive bias, while being above its signal curve.
Even with the all the technical indicators showing a favorable bullish scenario for Bitcoin, the price still hasn’t extended its upside momentum and is currently appearing weak near 290.78 fiat, the current in-term resistance level. With its head pointing towards south, it is clearly targeting 282.82 fiat as our current in-term support. Our breakout strategy has been planned while keeping the said levels in mind.
With saying so, we will first look towards Bitcoin taking a dump towards the in-term support line, during which we will enter a short position towards the said level, and will further validate 276-277 as our primary downside target area. Our stop loss on these trades will remain to be near 289.20 to exit the market in case of a bias reversal.
Conversely, a break above the in-term resistance level will validate 294.93 as our clear medium-term upside target. On this trade, our stop loss will be near 289.08 fiat.