ForexMinute.com — Last 48 hours in the cryptocurrency market saw Bitcoin price exploding into the skies just before the weekend closure. There is however one fundamental speculation attached to this rally. It is none other than the Grexit — Greece’s much awaited referendum on international bailout — which has speculated that its people will add demand to the overall Bitcoin market. It surely seems to be happening, but a majority of buying volume is coming from China, not Greece.
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a strong bullish bias, for the price is actually a way too above its near and long term SMAs. The RSI, as you can also notice, has surged near the buying threshold level — at 70; while the MACD indicator has also rocketed above its signal curve and is also inside a positive bias. The market though indicates a strong buying pressure, but one is recommended to expect some mild-to-normal bearish corrections as well.
Due to the previous price rally, we are now watching Bitcoin trading between an altogether different trading parameter. We are therefore treating 266.76 as our new in-term resistance level and 259.27 as our new in-term support line. Ideally, the price is expected to remain within these levels, as we enter the Asian and European session. We will though still check our levels in case price attempts a breakout — on either side.
At first, a break above the in-term resistance line clearly validates 271.57 as the primary upside level. We would be entering our long position towards the primary level by keeping our stop loss near 265.30 fiat. Also, in case price tends to extend its bullish action, our target will be shifted towards the previous higher high — at 274.80. Our stop loss in this case will be near 271.
A mild correction meanwhile will make us put a short towards the temporary support line near 263.50. A further correction and 259.27 will be back in sight, opening some further profitable opportunities. A break below this level would validate the primary downside target near 255.07 fiat. While placing this trade, we will clearly wait for Bitcoin to cross below the in-term support line and we’ll be placing our stop near 261.71 in case of a bias reversal.