ForexMinute.com — Last 48 hours in the cryptocurrency market have been pretty bearish for Bitcoin which, upon attempting to break above the close upside levels, fell abruptly in a notable sell-off. The grounds however were made near the secondary downside level of the previous range — as expected in our previous analysis — and price is now attempting to form upside corrections which is somewhat looking weak to us. Let’s have a look:
Bitcoin 4H Chart
As you can notice the 4H BitFinex chart, Bitcoin has indeed fallen below the 50-, 100- and 200-H trendlines, while the 4H RSI has dipped near 30 — both indicating a strong bearish bias in the market. It is proved further with the MACD blue curve that has stayed inside a negative territory throughout the weekend, and is showing no signs of recovery at the time of writing.
Which brings us to today’s risk assessment in the Bitcoin trade market. The price is now in a new range, where 229.23 and 233.04 are acting as the new in-term support and resistance levels, respectively. A correction above the in-term resistance level would open long opportunities towards the primary upside target near 235.01 (this level has proven itself as a strong support zone in the previous trading range). However, make sure to set your stop loss somewhere below the in-term resistance to ensure a timely exit in the event of bias invalidation.
Conversely, Bitcoin continued to sight 229.23 as its in-term support. If the price manages to pass through it, it would some decent short opportunities towards the primary downside target near 227.28, while sighting a double bottom near 226.41. While placing your short positions below the in-term support, make sure to place your stop loss near 230.00 to ensure a timely exit in case the price gets corrected again.