ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin recovering from an overlong downtrend, causing a volatile bull run. The impressive correction somewhat coincided with the FOMC’s announcement of not increasing rates. Earlier, it was speculated that an increase in Fed’s interest rates would strengthen US Dollar, the result of which would be a devalued Bitcoin. But as it seems, the FOMC held its plans to impose a rate surge — at least for now.
Our previous analysis had predicted an extended bearish trend, while overlooking the speculative impacts of FOMC’s announcement on Bitcoin. Nonetheless, we had also anticipated a bullish overrun and had suggested some upside levels to get the maximum positive reward profile. As the correction has extended above the trading range, we have likewise revised our trading parameters. What are these levels? Lets check out:
Bitcoin 4H Chart
As you can see the 4H BitFinex chart above, the range we are watching for today’s intraday breakout strategy has 236.17 fiat serving as in-term resistance, and 233.86 fiat serving as in-term support level. The price is currently in midst of these levels, currently testing the 100H SMA to establish an extended upside momentum.
Which brings us to the technical indicators: the price is visibly trending only a little above its 50 and 200 SMAs, while the RSI has surged to near 60. The MACD indicator, too, has risen near its normal line thanks to the recent massive buyout. But overall, Bitcoin is still in a medium-term bearish bias.
We will therefore be expecting a little bearish correction in next few hours. At first, if Bitcoin manages to cross above the 100H SMA near 235.20 fiat, we will instantly place a long position towards the in-term resistance. On this trade, our stop loss would be situated near 234.56 fiat to get us out of the trade on a very small loss.
We will revise our long position further if price breaks above 236.17 fiat — in this case, towards 237.05 fiat, our medium-term upside target. On this trade, we will maintain our stop loss just below the in-term resistance line to maintain our overall positive reward profile.
Looking the other way, a slip from the upside levels will make us put a short towards the in-term support level, while targeting the medium-term downside point near 233.12 fiat. On this trade, our stop loss will be at 234.48 fiat.