ForexMinute.com — The gone weekend didn’t bring any surprising volatility for Bitcoin, and price therefore remained to move forwards in a stiffer consolidation. The levels meanwhile also got stuck in a five-dollar range, unable to establish a bias while hinting a breakout towards downwards. Have a look:
Bitcoin 4H Chart
The levels (red and blue) we defined in the chart above are same as in the previous analysis, each representing primary risk levels on their respective side. You can therefore notice how far the price is far from each of the aforementioned horizontal sides, indicating its confusion to move towards one particular medium-term bias. This simply represents the uneasiness of traders while setting short/long positions across the primary support/resistance levels.
Normally, Bitcoin price tends to attempt a crash after staying a stiff trading parameters for too long. We are therefore sighting new the preset support near 222 in case the market tends to move towards south. Anything below this level will open up the road towards 215, the primary downside risk in current channel. At current Bitcoin price around 224, we are already past the stop loss that could have been near 225. We therefore would like traders who are wondering to place short positions to wait until the price actually crosses below the 222 mark.
Conversely, in case the price bounces back, it would open good opportunities for traders to enter the market at a presumed support, while sighting the medium term target towards 226, with a possible run towards 227.