ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin slipping from its intraday high amid a huge sell-off. The bearish momentum, despite of being looking strong initially, slowed down right near the prevailing medium-term downside target, as we had predicted in our previous analysis. We hope our readers were able to take out a decent profit off this short trade without putting much capital on risk.
As we enter another day of trading, when Asian and European sessions are still in play, we are surely hoping Bitcoin to respect its newly found in-term support level near 286.13 fiat, while sighting 294.28 as its in-term resistance level. Let’s have a look at the chart to understand it better:
Bitcoin 4H Chart
As you can see, Bitcoin is clearly looking marginally above its 50H SMA, while is still maintaining a gap from the 100 and 200H ones. The 4H RSI, meanwhile, has dropped towards 45-47 range upon facing the recent selling pressure. The MACD indicator, while maintaining its overall positive bias, has dipped below its signal curve. All these technical indicators jointly indicate a near-term bearish bias in the market.
Which brings us to today’s intraday breakout strategy. We will first look for a break above the in-term resistance level to validate 299.11 as our medium-term upside target. On this trade, our stop loss level will be around 292.58 fiat to ensure an overall positive return, and exit the market in case of a bias reversal.
Conversely, in case the prevailing in-term bearish bias looks to stay further, a break below 286.13 fiat will immediate put us short towards the primary downside target near 282.40 fiat. On this trade, we will keep our stop loss near 287.82 fiat to exit our positions in case of a bounce back.