ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin experiencing a $90 crash within minutes. The surprising fall is speculated to have been initiated at Bitcoin Exchange BitFinex, whose orderbooks began to lag upon facing huge selling volumes. To us, the price action was more like the job of opportunistic accumulators that utilized the current Bitcoin XT event to create uncertainty in the market. It has happened in past as well.
And no shame in saying, but even our yesterday’s intraday breakout analysis stood pointless to this manipulation. But we still hope our readers had put their stops on the levels we suggested. It could have protected them from all of the current manipulative price action.
With that said, we are now in between a volatile and uncertain trading environment. Nevertheless, the ability to make near-term profits is still quite possible. Let’s have a look at the chart first:
Bitcoin 4H Chart
As you can see the chart above, the Bitcoin took a steep dive towards the January 2015’s bottom, but also recovered subsequently and is now valued around 236 fiat. We are expecting some further upside action as a part of much-needed bullish correction. Also, this is a good buying opportunity for traders to enter the market on near-term profits. With that said, we are looking at a completely new range for today’s analysis, with 240.00 fiat serving as our psychological resistance level, and 229.49 as in-term support.
If we can break above the psychological resistance level, it would clear our long position towards 251.80 fiat — the level at which the recent crash took place. On this trade, a stop loss around 239.00 fiat will give us enough time to exit the trade without incurring much loss.
Looking at the other way around, we can never ignore another bearish action in this time of flash crashes. We would therefore recommend our readers to avoid placing any downside positions in case the bears return. This could be very risky. For lion hearted souls, a short towards the in-term support would be enough to feed the bellies for today.