ForexMinute.com — Last 24 hours in the cryptocurrency market have encountered Bitcoin extending its prevailing upside bias, though with a normal momentum. As a result, the price is now testing new resistance levels, though the chances of a volatile breakout is equally possible due to a long-term bearish bias. Have a look:
Bitcoin 4H Chart
As you can see the 4H BitFinex chart above, the Bitcoin price is clearly attempting to cross above its near-term moving average near 232, also the channel resistance. On the other hand, the RSI, currently at 51 is hinting to move back towards the selling area, possibly due to a weak upside momentum near the psychological resistance 230, as you can see in the chart (the weak red flag at the end). The MACD blue curve meanwhile is hinting a near-term bullish bias, waiting to cross inside the positive territory, though expecting a reversal as well.
In the meantime, the levels we drew in yesterday’s analysis remains intact even for today, thanks to Bitcoin temporary breakout. The price is neatly confined within in term support near 222 and psychological resistance 230, with more inclination towards the latter. In case price really attempts a reversal around 230, which it visibly is, it will open short opportunities for day traders. Therefore, setting your stop loss near 227 would ensure a timely exit in case of bias reversal. The in-term support will continue to stay held near 222.
We must also warn readers of the tight action we are seeing in the current Bitcoin price scenario. This market is famous for attempting a breakout amid the low volume trades. We therefore would like to hold your horses if the price hits 222, as the expected downside momentum can take price to as low as 200.