ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin shying from establishing a clear breakout and extending its prevailing stability. The price moved within a predefined pattern — buyouts near support, sellouts near resistance — and therefore opened some decent near-term trading opportunities.
As we enter another day of trading, we’ll be watching if price continues between the prevailing trading range, or manages to establish a breakout. Let’s look at the following link:
Bitcoin 4H Chart
(click the link above to view the chart)
The 4H BitFinex chart displays Bitcoin in a neutral bias, for the price is above 50 and 100-H SMA but, at the same time, is way too below the 200-H trendline. The 4H RSI meanwhile is bouncing between 55 and 60 while the MACD trendline is also trending inside a positive territory — both indicating a buying area for Bitcoin.
We will still be looking if Bitcoin extends the current downtrend, where it will definitely be looking towards to break below 228.22, the range support level. A run below this line will instantly validate 225.76 as the primary downside target. Therefore, putting your short towards the primary level will ensure a decent profit-making trade. But do not forget to place your stop loss near 230.26 as it ensures you exit the market upon a bias invalidation.
Looking at the other way around, we will be watching 231.35 as our in-term resistance level which, if breached, will further validate 232.95 as our primary upside target. For obvious reasons, we will be looking to enter long towards the in-term level from the current position (at press time, we are at 229.70 fiat). In this case, our stop level be as usually placed at 228.57 to ensure a timely exit from the market. To those who are planning to go long towards the primary upside target are recommended to enter near 231.30 while placing the stop loss below the in-term resistance level.