ForexMinute.com — Soon after Greece reached an agreement with the Eurozone for a third bailout, Bitcoins saw a steep decline in its value. Despite staying above the $300-mark throughout the weekend, the price failed to extend bias and crashed towards $290. In our previous analysis, we had briefly predicted such a scenario, and therefore, had mentioned certain levels to place your exit points. We hope our readers took that advice and exited the market without being chopped off much.
As we enter another day of trading, we can see Bitcoin in a new trading range, retesting its old resistance levels to improve the bullish bias. Nonetheless, the current price action is still opening some decent profitable positions. In today’s analysis, we’ll be checking out these levels to ensure us some little profits, while maintain our risk profiles. Have a look:
Bitcoin 4H Chart
The 4H BitFinex chart above shows Bitcoin in a heavily weaker bullish bias, for the price has fallen towards the 50H SMA, but is still maintaining to stay above it and 100 and 200H SMAs. The 4H RSI meanwhile has dropped as well, and is bouncing between 45 and 50. The MACD indicator, while maintaining its positive bias, has also fallen below its signal curve. These technical indicators jointly points towards a neutral sentiment in the market, with a slight attraction towards the bulls.
At this point of time, we are expecting Bitcoin to bounce between the currently in-term support and resistance levels, near 284.86 and 292.80 fiat. We will, therefore, first be placing our short position towards the in-term support line by keeping our stop near 290.88. This trade will ensure very little profits, and will definitely be less riskier than the shorts towards further downside levels. Speaking so, a break below the in-term support line will validate 278.64 as the primary downside target. While attempting this position, we will be placing our stop loss near 286.09 fiat to avoid being chopped off in case of a bias reversal.
Conversely, we will be entering our long position only when the price cross above the 292.80 resistance line. A break above this level will instantly validate 297-300 as the primary upside target area. We will meanwhile be placing our stop loss near 292.00 to exit the market in case of a bias reversal.