ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin respecting its prevailing range and encountering minimal fluctuations throughout the day. Our daily strategy therefore hasn’t changed much if compared to our previous analysis. We however will be discussing the possibilities of a breakout at this point of time, which often appears after a too-stable price action.
Bitcoin 4H Chart
In the 4H BitFinex link above, we can check how Bitcoin is trading mid-range between the current in-term support and resistance levels near 228.22 and 231.35 fiat, respectively. We recommend our readers to keep their focus on these levels for today’s trading session.
The price meanwhile is trending above the 50 and 100H SMA trendline, while the RSI is still going sideways near the 55-60 range. The MACD trendline — in positive territory — is also going horizontal in absence of enough buying/selling signals. The technical indicators therefore also supports a neutral bias theory.
We will therefore be waiting for price to test both the in-term support and resistance levels as we head into today’s trading session. At first, Bitcoin is clearly looking to attempt a run towards 231.35, opening some little profit opportunities at press time. However, a break above this line would instantly validate 232.91 as the primary upside target, from where you can take a decent profit by making a long entry. We would however urge you to place your stop loss near 230.04 to avoid being chopped in case of bias reversal.
Looking south, the temporary support level near 229.25 is holding the price tight as of now, borrowing pressure from the in-term support level. We would be looking for Bitcoin to breach 229 to validate further downside levels, the primary being 228.22. In case the temp level is broken, placing a short towards 228.22 will ensure a little profit. However make sure to place your stop loss just above the entry for a timely exit, if bias gets reversed.