ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin price slipping through the massive bearish cracks that seemed to have formed after the Evolution Marketplace news.
It has been rumored that the owners of the online drug marketplace Evolution have disappeared with customers’ 144K BTC, and the selling pressure on the market has something to do with those Bitcoins. One cannot ignore the fact that the panic sell began almost the same time when the news made its way into the newswires.
BTC/USD 1H BitFinex Chart
As you can see the chart above, the Bitcoin price is clearly dipped a way too below the 50H MA, while at this hour is sighting the 200 MA near 263 as its primary upside risk, with channel resistance near 261. At the same time, you can notice price forming lower lows near 250 — a psychological channel support, in our opinion.
The RSI is trending inside an oversold area, while the MACD has also dipped inside the negative territory — both confirming the near-term bearish bias in the market.
At this point of time, the 250-support is playing an active barrier between a short upside rally and a breakout towards the last month’s support are between 240 and 245. It would be too risky to play any risky long position at this time. In case the price actually hints to attempt upside corrections, with RSI moving above 30, then you may place a long position towards the channel resistance 261. A retest at this top will also be likely, and in this case you will be recommended to set your stop losses near 253, in case the bearish bias extends further.
Except Darkcoin that has looking neutral, every other cryptocurrency has tailed the Bitcoin’s aggressive downside momentum. In over the last 24 hours, Litecoin and Dogecoin have both fallen 3-5%.