ForexMinute.com — Last 24 hours in the cryptocurrency market saw Bitcoin extending its prevailing bullish bias and thereby, flirting with the golden $300 mark. The aforesaid rally however is neither a breakout nor a bubble; but it is more like a social sentiment backed by a certain fundamental factors, such as Greece crisis, Litecoin’s huge cash outs in BTC, amongst others.
The market is now left with a huge volatility to deal with and any form of trading entry must be made keeping these extraordinary price explosions in mind. There is a chance that Bitcoin will retrace back; there is also a chance it will attempt a breakout towards mid-300s. All we’ll need to do at this point of hour is place our levels ideally to churn out good profits with minimum risks. Let’s have a look to know more:
Bitcoin 4H Chart
The 4H BitFinex chart above displays Bitcoin in a strong bullish territory, for its price is currently trending above all the key resistance levels; and also above its 50, 100 and 200H SMAs. The 4H RSI meanwhile has also rocketed inside the overbought region, suggestion minor corrections in the upcoming hours. The MACD indicator is also maintaining its positive bias. All these indicators point to a strong buying sentiment in the market.
At this point of time, our long position towards the current in-term resistance 316.20 comes first. We will be entering this position soon to chunk out an ideal profit from the current rally. However, our stop loss will be near 305.00 to exit the market in case of a bias reversal. If price breaks above the in-term line, it will validating 320.00 as the primary upside target. This particular level had once played a strong support line towards the rally towards late 300s. If broken, we expect price to form a new range by treating 320 as its ultimate in-term support line.
However for now, our in-term support line has moved to near 308.38. For now, it looks weak enough to hold the price in case of a correction. We would therefore be looking towards Bitcoin to break below this point to place our short entry towards 300.00, a psychologically-induced support line, with downside risk towards 292.53. Our stop loss here will be placed near 302.00.
The market is now left with a huge volatility to deal with and any […]