Bitcoin starts July on an extremely positive note, hitting a fresh 3-month high of $268 thereby extending its rally into the third day. The gains come amid speculations that Greek people are converting their savings into Bitcoin as Grexit looms large. So does it mean that Bitcoin will face a dramatic fall if Greece is able to stay in the Eurozone post the July 5 referendum?
Bitcoin has added 2.11% since yesterday to trade at $264.
Technically, Bitcoin looks overvalued from a near-term perspective and after further appreciation in the market cap, it may become a shorting candidate.
Bitcoin Chart Structure – In my previous analysis titled At June’s High, I mentioned that the cryptocurrency has taken support from the previous high of June at $253. As can be seen from the 240-minute BTC/USD price chart above, Bitcoin still holds comfortably well above that point.
Moving Average Convergence Divergence – The MACD indicator and Signal Line continue to remain strong and report higher levels. MACD has a current value of 4.8422 while the Signal Line has a value of 3.9848.The Histogram faces a minor dip in its reading to 0.8574 but, that is nothing to be concerned about.
Momentum – The Momentum indicator hit a high of 17.7800 before profit booking eased the supporting momentum to 8.7300.
Relative Strength Index – The crypto currency is seen flirting with the overbought level. From yesterday’s reading of 75.5988, the 14-4h RSI has dropped to 68.9275.
Chart structure remains strong for Bitcoin as well as the aforementioned technical indicators. This suggests that the cryptocurrency may have some more steam left, and may rise up to $273-275. But if Greece is really the reason behind Bitcoin’s rally, then market may start to price in Greeks’ opinion on the July 5 referendum, and if the result comes out to be pro-austerity, Bitcoin may witness a dramatic fall.