ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin attempting a near-term breakout towards the primary upside level after breaking above an important resistance line near 231. Our previous analysis has predicted such a price action during the weekend, and we hope traders were able to chop out decent profits out of their long positions towards the primary upside target.
As we enter another day of trading, we’ll be keeping our eye on newly formed intraday support and resistance levels near 231.35 and 235.53 fiat, respectively.
Bitcoin 4H Chart
(click to see the chart)
The 4H BitFinex chart above clearly displays Bitcoin in a medium-term bullish bias, for the price is situated above the 50, 100 and 200H SMA trendlines, and the RSI is also fluctuating between 65 and 70 — both representing a clear buying area. In the meantime, the MACD trendline is also located inside a positive territory, with signal curve dipped below the blue curve. This particular indicator points towards a near-term buying interests of traders.
We are, therefore, definitely looking at Bitcoin to test the new in-term resistance near 235.53, a break above which would instantly validate 237.11 as the primary resistance target. If you are in any mood to place your long position towards the primary level, also make sure that you place a stop loss somewhere near 233.00 to ensure a timely exit in case the bias gets invalidated.
Looking at the other way around, a run towards the new temporary support near 232.78 will bring the in-term support in sight, near 231.35. One can find some decent short opportunities towards the latter, and can take out a little profit from this neatly extended downtrend. Further opportunities can also arise if the in-term level is broken, and validate 229.50 as the primary downside risk. We will however recommend you all to wait for such a price action and avoid making advance short trades. Place your stop loss near 232.24 fiat all this time.