ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin continuing to its prevailing downside momentum, while exhibiting weak bullish corrections alongside. The price action, meanwhile, validated the levels we discussed in our yesterday’s intraday analysis. We hope traders were able to take a decent profit off their short positions.
As we now enter into another day of trading — with Asian and UK session still in play — we are seeing Bitcoin attempting yet another bullish correction near our previous downside target, which is now serving as the current in-term support level (near 281.62 fiat). On the other hand, the corrective bounce would initially be targeting 286.13 as its in-term resistance level.
Our today’s intraday breakout strategy will be sketched while keeping these two levels in mind. Let’s have a look at them in the chart below.
Bitcoin 4H Chart
As you can see in the 4H BitFinex chart above, Bitcoin is not displaying any reason to bounce hard. The price is still in midst of the newly formed range, between levels we discussed above. At this point of time, there is a strong bearish sentiment in play and we should all be keeping our risk levels in sight before placing any short/long position.
At first, we would be waiting for price to break below the in-term support level, an action that would have us put a short towards 275.71 fiat as our primary downside target. On this trade, our stop loss will be placed near 284.35 fiat to have us exit the position on a very little loss — in case the bias is invalidated.
Looking at the other way around, a conditional bounce back towards the in-term resistance level would validate 289.63 fiat as our medium-term upside target, with further sights towards 294.28 fiat. On these trades, our stop loss will remain to be near 284.50 fiat to maintain our positive reward profile.
On the other hands, let’s not forget that Bitcoin is currently in a very strong bearish bias, for its price is now trending below its 50 and 100H SMAs and the 4H RSI has also slipped below 40. The MACD indicator has also sinked inside a negative bias. To establish a near-term bullish bias, the price would really need to break above 286.13 fiat.