Bitcoin on Thursday improved its bullish bias by rising over 1.5 percent against the US Dollar.
The BTC/USD on BitFinex is trading at 6421-fiat while continuing its bullish retracement from 6100-fiat, our intraday low. The pair kickstarted the Asian session while forming lows towards 6382-fiat. It consolidated sideways throughout the said session within a strict trading range. 6400-fiat continued to be the level of interest, meanwhile. BTC/USD never slipped too below the stated level, nor surged too far from it. During the European session, the pair once made higher highs towards 6460-fiat, only to adequate selling pressure.
The stability in Bitcoin value appeared despite a majorly depressive fundamental, the hack of 6,000 BTC at Zaif, a Japanese crypto exchange. The attacker seems to be shying from dumping all the stolen funds. But the danger lurks in near-term if the sheer amount of stolen Bitcoins – and their sizeable equivalent value in USD – is concerned.
The near-term symmetric triangle discussed in our previous analysis got broken following the latest volatile action and squeezed out decent profits from our long and short positions. Today, we decided to zoom out a bit to revisit our medium-term descending triangle. There is indeed an upside action awaited towards the upper trendline, which should coincide with the 61.8% Fibonacci retracement level of the last swing from 5748-low to 8488-high.
BTC/USD is still trending below its 50, 100 and 200H SMA indicators. The RSI and Stochastic are looking to enter towards their neutral zones following the latest upside correction. In RSI particularly, we could expect an extended bullish action if we break above 47. On daily charts, the bias remains bullish.
The range we are watching for today is defined by 6474-fiat as interim resistance and 6375-fiat as interim support. We are first waiting to put our breakout strategy in place. That said, a break above 6474-fiat will have us enter a long position towards 6548-fiat. At the same time, putting a stop somewhere around 4-pips below the entry position would improve our risks in case a pullback occurs.
Looking the other way, a break below 6375-fiat will have us put a short towards the 200H MA indicator of the 1-hour chart. A stop loss somewhere 2-pips below will protect us from additional losses should the price reverses.
Featured image from Shutterstock. Charts from TradingView.