ForexMinute.com — The gone weekend in the cryptocurrency market saw Bitcoin reattempting a bull run towards prevailing resistance level. The action seemed typically impulsive, taking price to local peak level once again and offering enough long trade opportunities. However, there was a very little correction as well due to selling pressure near the resistance line.
In the meantime, we were able to draw out a decent profit from our initial intraday target, as mentioned in our previous analysis. As we now enter another day of trading, price is now trending sideways while staying within the prevailing range. Will the bull trend extend or will take a routine bearish route? Let’s check out:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a near-term bullish bias, for the price is now above its key SMAs, and the MACD indicator is also maintaining a positive bias. The recent selling however has brought 4H RSI down to 52, indicating a neutral scenario.
The prevailing price action has been slow that can mean anything at this hour. The price can either continue to break the upside levels, or fall back towards the first support line. We have therefore placed a certain entry and exit points to get in and out of market without incurring heavy losses.
Bitcoin is currently in midst of the same range, in which 240.49 fiat is serving as in-term resistance and 236.23 fiat as in-term support level. On our trades, we would first be sighting 237.63 as our initial upside target, due to its ability to attract buying trades during the previous rally. In case this level is broken, we would extend our short position towards in-term support line, while maintaining stop loss near 238.50 fiat.
Looking the other way, a continuation in upside momentum would have us put a long trade towards in-term resistance. A further break and we’ll enter a similar position towards 241.43 fiat as our medium-term upside target. On this trade, our stop loss will be maintained near 239.81 to maintain the overall reward profile.