ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin continuing to trend downwards while displaying choppy movements. However in last few hours, the overlong consolidation channel seems to have fumed some shaky hands which ended up crashing price to near 244, breaking below the channel resistance near 250 fiat. Let’s elaborate it further.
BTC/USD Bitcoin 4H BitFinex Chart
Against our exception, the Bitcoin price has suddenly crashed, a fairly manipulative movement. We though can see price attempting a correction near the current bottom, towards the primary upside risk near 249 fiat. The overall bearish bias however has been validated, bringing back the bottoms of previous consolidation range back in sight (notice the lower lows towards 235 in late March).
As the chart shows, the Bitcoin price was already making lower highs and lower lows before the crash, thereby indicating a stronger bearish bias in the market. It now has dwelled further inside the mood and is now looking at 240-241 as its next support area. If the current trend continues, the price might even retest the March’s bottom near 235 fiat. Therefore, it would be better for traders to set their stop losses just above 241 to ensure a timely exit, on a very small loss.
Conversely, if Bitcoin price corrects itself towards the upside, it would simply be sighting 249-250 area as its next resistance, with a certain resistive pressure on 246 as well. At this point of time, we don’t see price crossing above the aforementioned levels and therefore ask our readers to set their stop loss just below 246 to ensure a decent risk reward. A medium term reversal could also be ensured if price tends to hold itself below the 250-251 area.