ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin maintaining its near-term bullish momentum. It however fell right short of breaching the current range resistance, and turned back towards south. But as we discussed in our previous analysis, even such a movement was about to spark out some decent short positions. As we enter another day of trading, let’s check which levels are going to provide better trade opportunities.
Bitcoin 4H Chart
The 4H BitFinex chart displays Bitcoin below the 50-, 100- and 200-H SMAs. A decent corrective action in last few hours however has improved conditions for 4H RSI and MACD indicators. As you can see, the RSI is current being tagged just near 40. It previously was near 30, a very strong selling area. In the meantime, the MACD blue curve has notably moved above the saffron signal curve, indicating some decent buyouts in last few hours. However, the overall 4H chart still indicates a strong bearish bias in the market.
We are therefore looking at levels that can provide some decent profits while avoiding risks alongside. Bitcoin is clearly looking stuck between the presumed in-term support and resistance levels, at 220.54 and 226.66, respectively. With Bitcoin flaunting weak upside corrections, we would definitely be watching the in-term resistance for now. A break above this level will simply validate 230.50 as the next primary upside target — means a decent long opportunity with a stop near 225.94.
Conversely, a run towards the in-term support near 220.54 would face a little barrier near 221.73 — a point which has previously acted as a temporary support to the weak corrections. We however will continue to look for a break below 220.54 to validate short opportunities towards 218.46, the primary downside target. Here, traders are recommended to put their stop loss near the aforementioned temporary support level — 221.74 fiat.