ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin price exploding amid a very strong psychological buying order. As we had discussed in our previous analysis, the Bitcoin market, since many days, have been growing volatile due to a poor Greece economic health. We also discussed that it might just be a hype, amplified further by rich speculators and day traders to create some really attractive long and short positions. As for now, Bitcoin is simply looking for its bear trendline. Is it near? Let’s check out in the analysis below:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a very very strong bullish bias, for the price is too much above its 50, 100 and 200 SMA and the RSI too has been trending inside an overbought region. The MACD blue curve meanwhile has also rocketed a way too above its normal line, and is further signaling to stay above its signal curve. The technical indicators jointly indicate a strong buying pressure in the market, in mood to extend correction the moment it appears and sticks for a while.
As we can see the chart now, we have already broken the December’s trendline amid a strong buyout and are now testing March 2015’s higher high around 271.14 as the current in-term resistance. On the downside, the in-term support is held around 262.43. Disregarding the current volatility, we expect price to test these two levels throughout the day while, at the same time, looking at every opportunity to invalidate them.
At this point of time, we would be waiting for Bitcoin to break below the in-term support line to validate 258.44 as the primary downside target. A short position towards this target would instantly ensure some decent profits; however, we would still be placing our stop losses near 263.58 to exit the market in case of a bias reversal.
If you are planning to place long positions, which also seems like a high trend at this hour, we would recommend you all to wait for Bitcoin to break above the temporary resistance line near 266.70. This particular line has held Bitcoin from extending its prevailing upside bias. If broken, a run towards the in-term resistance near 271.14 would be a cakewalk. A break above this level would further validate 275 as the primary upside target.
While entering long positions, we would recommend our readers to place there stop losses near 265.25 to avoid being chopped in a corrective period.