ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin consolidating sideways within a strict trading range. Prior to that, the digital currency had faced a volatile retracement upon the happy conclusion of Greek’s debt crisis. The flat price action at this point of time thereby represents nothing but lack of enough demand.
As we enter day of trading, we are still seeing some decent price movements, falling and recovering within a predefined range. With this said, we are now looking at the ideal entry/exit levels to keep our bets on. We will meanwhile will also be aware of any sort of breakout scenario. Have a look:
Bitcoin 4H Chart
The 4H BitFinex chart above shows Bitcoin in a medium term bullish bias, for the price is still trending above the 50, 100 and 200H SMAs. The 4H RSI meanwhile has dipped in the 40-50 range, and the MACD indicator has also come below its signal curve, albeit maintaining the positive bias. All these indicators point towards a neutral buying/selling pressure in the Bitcoin market.
We are therefore placing our intraday positions towards each side. For now, the range we are keeping an eye on brings 284.66 as our prevailing in-term support level, and 292.80 as our in-term resistance level. We will initially be looking for price to break above the in-term resistance line to validate 299.76 as our primary upside target. This would open some decent long positions in the process. We can also expect price to break above the primary line and bring 307.95 as a medium-term upside target. On this trade, we would be placing our stop loss near 291.83 to ensure a timely exit in case of a bias reversal.
Conversely, a pullback from the upside levels instantly brings the in-term support level near 284.66 back in sight. A break below this level validates 278.64 as our in-term downside target, but from the risk management perspective, a stop loss near 286 somewhat helps you to avoid chopping in case of a bounce back.