ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin withdrawing from its strong bullish momentum, while failing to form any extension towards the psychologically-induced $300-mark.
The correction seems to have been appeared due to an expected selling pressure near the intraday top around 295.68 fiat. In our previous analysis, we had anticipated price to form such a corrective wave, but had excused ourselves from placing any intraday long positions due to expected volatility. Resultantly, we were able to short our holdings (we entered at $275) as soon as price hit the previous in-term support level (near $288.09). Overall, it was a profitable trade for us.
As we now enter another day of trading, we have now come in the midst of a new trading range, where 288.09 is serving as in-term resistance and 282.41 fiat is serving as in-term support level. What will be our intraday breakout strategy regarding these levels? Let’s check out:
Bitcoin 4H Chart
As you can see the 4H BitFinex chart above, we are now in a deep bearish correction mode and therefore can expect Bitcoin to go further down in coming hours. We will therefore be entering our first position as a short towards 278.99 fiat, our medium-term downside target once the in-term support is broken. On this trade, our stop loss would be near 283.88 fiat to get us out of the trade should there be a bounce back.
In an event where in-term support holds the price from falling further into bearish channels, we will first put a small long position — towards in-term resistance — to test the waters. In case price manages to cross above 288.09 fiat, it will establish 291.95 as our immediate upside target, with an eye towards October’s high near 295.58 fiat. We will meanwhile maintain our stop near 287.14 fiat.