ForexMinute.com — Last few days in the cryptocurrency market has encountered a sustained downtrend in Bitcoin prices. However, the support near 230 somewhat defended the prevailing bearish momentum at some extent, an action that never transformed into an expected bullish correction. We are therefore seeing Bitcoin consolidating sideways amid a heavy intraday bearish bias. Have a look:
Bitcoin 4H BitFinex Chart
As you can see the Bitcoin chart above, the Bitcoin price is visibly under a threat from the primary channel resistance near 238, with an upside risk towards 240 where it has previously formed higher highs. The Bitcoin, under a nominal trading volume, is therefore repeating the pattern in a new consolidation range, between 230 and 240 — also giving us an idea to set our stop losses in case of bias reversals from either ends.
As for now, the Bitcoin price is trending below the moving average curve, while the RSI is somewhere near 35. It truly depicts the high-handled bearish pressure inside the market. The traders therefore are suggested to keep their bullish expectations calm, at lest for the next 24 hours.
Which brings us to the possible risk rewards from this highly congested trading range. We recommend our readers to look out for the channel support near 234, with a downside risk towards 232. They are therefore recommended to place their stop loss just near 232 in case the bearish bias extends. If you have entered the market at 236 or above, setting your stop somewhere near 235 will ensure a decent risk reward.
However, if price hints to stay above the 237 for too long, you can expect an aggressive retesting of the upside risk near 240. Therefore, placing a long trade just above 238 with a stop loss near 234 will ensure a low risk scenario for your trades. In case price bounce above the 238-resistance line, setting long position towards 240 will also ensure good profits.