Bitcoin can be seen consolidating around $242 after threatening the support of $240. It is now trading up 0.79% at $241.75.
While it may look like Bitcoin has successfully managed to hold its ground, its fate is still hanging by a thread. Why do I say this? Read the technical analysis of the 240-minute BTC-USD price chart below.
Bitcoin Chart Structure – Even when Bitcoin was being pressured below $240, it did not close below this crucial level and after spending considerable time standing on this support, Bitcoin decided to edge higher. But just when it looked that bulls would make a good comeback, their efforts were watered down by profit booking and fresh selling.
Moving Average Convergence Divergence – On a strongly bearish note, the MACD and the Signal Line are still below 0 level, indicating a lack of positive enthusiasm. The MACD and the Signal Line have latest readings of -0.6983 and -0.7700 respectively. But there is a slight positive change as well. The MACD has crossed the Signal Line on the upside thereby bringing the Histogram in the positive territory with a value of 0.0718.
Momentum – Even as the Momentum is still negative at -1.2500, it has supported the short rebound from $240. From the above chart, it can be seen that the latest rise from $240 has been accompanied by a stronger rise in the Momentum reading as well.
Relative Strength Index – The latest 14-4h RSI indicator has come in at 46.1297. This is a minor advance from yesterday’s 39.3851.
Technical indicators are giving mixed signals. They are more inclined towards the sell side than the buy side. Therefore, it can be safely said that Bitcoin’s chances of heading higher are hanging by the thread. Bulls must do the needful before bears make another move. Aggressive traders may consider building long positions while maintaining a tight stop-loss below $240 (closing basis).