ForexMinute.com — Last 24 hours in the cryptocurrency market has encountered Bitcoin price attempting a sharp recovery from the current channel bottom near 215. The upside correction however failed to impact the cryptocurrency trading close to Bitcoin, such as Litecoin, Dogecoin and Dash which remained on the downside throughout the day.
Bitcoin 4H Chart
As you can see the chart above, the Bitcoin price is clearly sighting towards the presumed channel resistance near 233, with an upside risk falling towards 234. It is however notably situated in a medium-term bearish bias channel, as it is below the 50-, 100-, and 200-H MA. The RSI meanwhile has jumped inside the moderate selling zone, currently at 46. The MACD blue curve is also inclined above the saffron signal curve, confirming at least a near-term bullish bias.
At this point of time, it is important to assess the trading risks that lie above and below the current Bitcoin price. We have therefore drawn multiple horizontal line to indicate the stop losses that might prove helpful in either entering or exiting the trades.
As you can see the chart above, the minimal ABC correction might move back towards the channel support near 222, with a downside risk still towards 215. As Bitcoin lingers around 226 at press time, with minor red flag appearing, it would be feasible to set your stop loss around just above 222 will ensure a timely exit in case the upside correction appears.
Also, a failed test at 222 will signal a short entry towards 215-217 area, opening near-term opportunities for day traders, with downside target remaining near 210 as usual. In the event of a bias reversal above 222, you could enter long positions towards 231 fiat. In case it appears around 215-217 area, the same would be applicable if treating 222 as the next upside target.