ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin bouncing between a restricted, though moderately wide, trading range. It seems like the coin has finally established a long-awaited peak level, and is now in corrective mood that might validate an extended bearish divergence. We feared such a price action in our analysis yesterday.
As we enter another day of trading, let us see which levels will be attractive enough to keep our eyes on and how we will gain out of the current price action towards them.
Bitcoin 4H Chart
The 4H BitFinex chart above maintains the prevailing bullish bias, but also indicate its weakness in last 24 hours. The price, being dipped down, is now just few dollars away from touch its 50H SMA, but still is trending above the 100 and 200H SMA. The 4H RSI meanwhile has been dipped below 50 — clearly a selling zone. The MACD indicator has also been dipped below the signal curve, but is maintaining the prevailing positive bias.
Thus, at this point of time, we will first be sighting 254.24 fiat as our in-term support level while the in-term resistance level will be the same as 261.31 fiat.
As you can see the chart above, Bitcoin is just near the in-term support line and has clearly validated 252.75 as the primary downside target. It is indeed an attractive short position and carries minimum risk. However, a further bear correction could put some more profitable trade on tables, for it will bring the secondary target near 249.54 back in sight. In case you are planning to go short on it, make sure to set your stop loss near 254.76 fiat to exit the market in case of a bounce back.
Conversely, a run towards the in-term resistance line near 261.31 fiat will have a little hurdles in between, thanks to the prevailing selling pressure. We would first be looking to place a long position towards 259.11, while keeping our stop near 252.87 to avoid being chopped in case the bias extends. A break above 259.11 will instantly open our position towards 261.31.