ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin holding its prevailing range because of very little volatility. A part of this low price action could have been caused by OKCoin, the Chinese Bitcoin exchange that went offline for a brief time following a database issue. But we still hope traders were able to churn out decent profits from the levels we suggested in our previous analysis.
As we enter another day of trading, with Asian session in play and UK being just started, we can surely hope to see price attempting yet another breakout — towards either level. Let’s check out the price action:
Bitcoin 4H Chart
Over the last few days, Bitcoin is bouncing between a predefined 245.61-241.04 range, with 245.61 being the in-term resistance and 241.04 being the in-term support level. As the price action continues further, we are seeing Bitcoin respecting the same range, while looking for a breakout amid speculations of Greece buyout — which I personally think to be a hoax, but consider for the sake of considering.
We will therefore be recommending you to avoid betting against the unseen odds. The technical indicators in 4H BitFinex above are definitely showing Bitcoin in a neutral bias, for the price, however being above its 50, 100, and 200H SMA, is still facing a notable selling pressure near the range resistance line. The RSI and MACD indicators further demonstrates the moderate selling pressure in the market, with their curves going downwards since the correcting chopping started last Thursday.
Bitcoin, for now, is looking to cross above the in-term resistance level, a move that would validate 249.47 as its primary upside target. It surely opens some decent long opportunities, if you risk to place your bet at current levels (near 244 at press time), but make sure to place your stop loss near 243.71 to ensure a timely exit in case the bias gets invalidated. A long towards the in-term level with the same stop meanwhile will ensure a very little profit.
Conversely, the downside department has been held tightly by the in-term support level around 241.04. If the price attempts pullback towards this level, there surely comes a very decent short position to churn out a little profit from the market. A break below, and the price action would validate 236.88 as its primary downside target — a risky short position as per my view. We overall would recommend to set your stops around 242.62 to avoid being chopped off from the market.
Entering your long position at 241.04 meanwhile seems like a good option for now. Though watch for a green candle to appear near this level before attempting the said trade.