ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin breaking above the ceiling line on a rare historical pattern — the announcement of Silk Road Bitcoin auction by the US government.
It is interesting to see that how, after previous rally, Bitcoin had appeared a brief correction towards the intraday lows. But right near the announcement of next auction, the price once again picked an upside momentum, which eventually resulted in the invalidation of key resistance levels.
Our previous analysis had kept some space for an extended bullish scenario and had suggested a few long trade targets to get a decent profit. As it seems, the analysis held pretty well and we were able to keep our overall reward profile positive. As we now enter another day of trading, the technical landscape of Bitcoin market has changed a bit. What is it? Let’s check out:
Bitcoin 4H Chart
After the previous rally, we have come in midst of a new — and relatively tighter — range. Here, 242.99 fiat is serving as our in-term resistance, and 241.97 fiat as in-term support level. These are the level we’ll be watching today for our intraday breakout strategy.
As one can see the 4H BitFinex chart above, the previous uptrend seemed more like a reaction to a fundamentally astound event. There is a huge possibility of market attempting to beat the prevailing trend, while breaking the near-term downside targets. We would be, therefore, watchful for such a corrective behavior.
Obviously, our first trade of the day would be towards in-term support which, if invalidated, will extend our position towards 241.43 fiat, our medium-term downside target. On both these trades, our stop loss will be placed near 241.91 fiat to get out of the market in case the bullish period extends.
We will meanwhile avoid placing any further short trades.
Looking the other way, a run towards the intraday high near 242.99 would offer us enough opportunities to get out some decent profits. Meanwhile, we will also be placing a long trade towards 244.93 fiat, just in case the price extends its rally. On this trade, our stop loss would be maintained near 242.13 to avoid any choppy behavior.