ForexMinute.com — Last few days in the cryptocurrency market have seen Bitcoin price declining at a rapid pace, with almost every key downside support level being teared down. At last, the price has tested 215 as its focused support, and therefore has showed some weak upside corrections. Let’s elaborate what we have in the plate for today’s day trading.
Bitcoin 4H Chart
As you can notice the BitFinex chart above, the Bitcoin price is clearly attempting a bounce back after teasing the primary support level near 215, with a downside risk towards the Feb’s bottom 210. The price although is still trending inside a strong bearish bias, tells its current location. In the chart above, you can notice Bitcoin trending way too below the 200-, 100-. and 50-H SMA, while the RSI has just corrected itself after being in an oversold region for a brief time.
The indicators are pointing towards a further medium-term bearish action in next few hours, which makes us draw some risk assessment portfolio for today. In the chart above, we have drawn a blue horizontal line to indicate a downside risk of the current range, which could be tested in case the current bias validates further. The primary channel support near 215 however is holding promises to keep the Bitcoin away from testing the aforesaid bottom. We still recommend traders to place their stop losses just above 215 to ensure a timely exit during a bias reversal.
In case Bitcoin manages to bounce back from the aforesaid support, we are looking it testing the channel resistance near 224, with an upside risk towards 233 in case of extended correction.