ForexMinute.com — Last 24 hours in the cryptocurrency market encountered Bitcoin failing to form a double top, and falling miserably back to the downside risk levels near 230. Let’s have a look:
Bitcoin 4H Chart
As we predicted in our previous analysis, the slowing down of upside momentum near 243 fiat was a clear signal of some bearish corrections. There, we expected price to test 238 as its primary support, with downside risk towards 230-232 area. Today, at the start of Asian trading session, Bitcoin was already shaking enough to retest the channel bottom. It fell subsequently, bringing price inside the selling area.
The technical indicators are therefore displaying an altogether different scenario for now. The MACD and RSI have moved towards south, indicating to go further down the bearish road. The price however is still holding up above the 50- and 100-H SMA, handling the previous upside bias. It is a near-term bearish scenario for now, not a breakout.
At this hour, one has to seriously watch 230 as a threshold, passing which the Bitcoin price will establish a medium-term bearish bias, sighting 228 as its key support with downside risk towards 220-222 area. However, if price managed to float above 230, the chances of yet another upward bullish rally will be likely, sighting the same channel resistance near 238-240, with an upside risk towards 243.