Bitcoin has jumped more than 4% to $456.75 as bulls take advantage of the positive technical undertone. With this, the cyptocurrency has also met our prescribed target of $458.
So, should you be booking profits now? Let us find that out with the help of technical analysis conducted on a 4-h BTC-USD price chart taken from BITSTAMP.
Chart Structure – Bitcoin is now threatening to take out the Triple Top resistance near $465. The resurgent bulls look in complete control of the situation.
Bollinger Bands – The cryptocurrency is sustaining above the upper range of the BB, after taking support from the 20 4-h simple moving average of $440.
Momentum – The Momentum reading is showing signs of further appreciation; it is currently at 19.3400.
Money Flow Index – One aspect that should concern the market participants is the near-overbought reading of the 14 4-h MFI. The current value of 75.7213 is in close range to the overbought level of 80.
Relative Strength Index – The RSI has advanced to 63.4688, reflecting the improving strength scenario.
Except Bollinger Bands, all other technical considerations indicate that more gains may be achieved in the coming sessions. But, market participants should also note that a stiff resistance zone of $465-467 is near. And therefore, it would be a wise trading decision to book partial (or all, depending on the risk appetite) profits in long positions.
In case, bitcoin pierces the resistance band, a huge volume of short covering will be observed which will further boost the price. I strongly expect the bitcoin price to touch $500 if the bulls succeed in thwarting bearish blows.
Contra bet: Only high-risk traders should consider creating short positions near $465 for a target of $455.
Expect volatility to remain subdued in the coming sessions as well.
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.