ForexMinute.com — The gone weekend in the cryptocurrency market saw Bitcoin forming a triple bottom after crashing through its key support levels. As been rumored, the price action moved south right upon the announcement of XT, a much controversial fork of the Bitcoin protocol. The price however found some retracement near the primary downside target we discussed in our previous analysis.
With that said, Bitcoin is retracing, but weakly. We have, meanwhile, entered a new range, a factor that will be going to make us revise our upside and downside levels. Have a look at the chart below:
Bitcoin 4H Chart
The new range we see in the 4H BitFinex chart above is currently serving 256.46 fiat as its current in-term support level, while the in-term resistance level is at 260.47 fiat. These are the two levels we’ll be watching today as a part of our intraday breakout strategy.
At first, we’ll be looking for price to extend its bullish correction. With that said, a break above the in-term resistance will have us put a long towards 262.18 fiat — our medium-term upside target. On this trade, our stop loss would be at 258.58 fiat.
Looking at the other way around, a run towards the in-term support level would make us put a short towards 252.32 fiat — our primary downside target. We would meanwhile excuse ourselves from placing any further short trades, considering the downward volatility in recent days. Nonetheless, our stop loss will stay just a little above the in-term support to help us exit the trade in case of a bias reversal.
The same level is a good entry position.