ForexMinute.com — Last 24 hours in the cryptocurrency market displayed Bitcoin trending inside a predefined range, with equally volatile selling and buying signals occurring consecutively. As we enter another day of trading, we believe the range described in our yesterday’s analysis holds true for today’s price action as well. Let’s have an elaborated discussion to understand it further:
Bitcoin 4H Chart
As we can see the 4H BitFinex chart above, Bitcoin is visibly respecting the prevailing trading parameters, with in-term support and resistance holding themselves near 236.94 and 238.74. The upside level particularly is looking very strong, as the candles, in the last 24 hours, have failed to break above it due to strong selling pressure there.
Bitcoin meanwhile is trending above the 50-, 100-, and 200-H SMA, while the 4H RSI is fluctuating between 53 and 47. The MACD blue curve meanwhile has dipped a little inside the negative territory, though is still attempting a pullback above the signal curve and the normal line. The technical indicators therefore indicate a neutral bias in the market, with a certain emphasis towards the bulls.
Which brings us to the today’s risk assessment. With in-term resistance near 238.74 still in play, the price has visibly failed to extend its prevailing upside correction. However, a break above this level can still open some decent profit-making opportunities for day traders. We would recommend traders to hold their long positions until price makes a move above the aforementioned level. If it happens so, placing a long entry towards the initial upside target near 239.27 would be feasible. However, do not forget to place your stop loss just below the in-term resistance, in case the bias gets invalidated.
Conversely, staying below the upside levels can force price to retest the older downside levels, the primary being at the in-term support. A run down towards 236.94 would simply open short opportunities towards the primary downside risk near 235.34 fiat. A further breakdown will bring the next target — at 230 — in sight. However, make sure to place your stop losses 237.27 to ensure a timely exit from the market.