ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin sky-rocketing through our previously entitled key resistance levels, and confirming a sure-shot breakout. As we predicted in our yesterday’s analysis, the upside momentum opened some really great long opportunities towards the now-broken in-term and primary resistance levels. We hope our readers were able to sweep a decent profit from this trade.
As we enter yet another day of trading, we can new levels forming to establish our risk profiles for today. Let’s catch up the market’s mood before rolling onto that.
Bitcoin 4H Chart
The 4H BitFinex chart displays Bitcoin in a comparatively stronger bullish bias. The price is visible noted a way too above its 50-, 100- and 200-H SMA curves, and the 4H RSI has also rocketed inside the overbought region, awaiting corrections. The MACD indicator meanwhile is also trending inside a positive territory, and above its signal curve — indicating a definite buying pressure in the Bitcoin market.
The aforementioned price kicks has therefore brought in a new in-term support and resistance level to hold the new range. This time, we are eyeing on 238.62 to act as an ideal in-term support line while, on the upside, 242.20 seems like an ideal in-term resistance level to keep your eyes on.
We will first be looking for Bitcoin to attempt a run above 242.20 fiat which, if it does, would validate 244.95 fiat as its primary upside target. On this trade, it would be recommended to place the stop near 239.21 to take you out of the trade in case of bias reversal. This is hugely possible as the selling pressure is expected to go high near the intraday peak, which has also incited a downward momentum back during May 24-25 trading hours.
Conversely, if we see a pullback from the peak levels, our first natural target to place a short position would be towards 238.62 fiat. A break below this line would instantly validate 235.92 as the primary downside target — also a good short position. But we will still recommend you all to place your stop loss somewhere above the in-term line to avoid exposure to a dump — in case the current upside momentum turns out to be manipulated.