Bitcoin has extended its rally, hitting a new high for June as the month comes to a close. Also, the fate of Greece will be sealed today.
Bitcoin has hit a new monthly high of $258.89 and is currently trading up 3.36% at $258.55. With this, Bitcoin is up for the second consecutive day.
Technical analysis of the 240-minute BTC-USD price chart confirms that speculation has pulled the cryptocurrency into the overbought region, but that is not to say that the price cannot rise higher.
Bitcoin Chart Structure – As can be seen from the chart above, Bitcoin is retesting the previous peaks before heading higher, thus making it a buy on dips candidate. Post the weekend gains, the cryptocurrency retested the previous peak, while today, it has stamped the previous high for June before it headed higher.
Moving Average Convergence Divergence – The MACD indicator and the Signal Line are rushing towards highs. The latest MACD value of 3.2227 and Signal Line value of 2.2725 help in gradually bringing up the Histogram value to 0.9502.
Momentum – The Momentum indicator has jumped to the highest level of the past 10 sessions with a value of 10.0400.
Relative Strength Index – Bitcoin has become overbought from a near-term perspective. The latest 14-4h RSI value is 75.5988 but since the underlying strength remains comfortably strong, we may see more gains going ahead.
Bitcoin is currently a very dangerous security to trade on. The price may fall considerably post the Grexit, if it happens, as traders look to book profits or even if Greece manages to stay in the eurozone. On the other hand, speculative interests may take the price higher to stratospheric levels. Therefore, it cannot be said for sure how the market will react to the probable scenarios of Greece crisis. Participants are advised to wait out the event and let the market settle down before fresh trading.