Traders seem to have booked partial profits in their long positions as Bitcoin traded higher. Realizing that the massive gains have come in a very short period of time, they liquidated their positions thereby bringing the price down to its near-term support of $267.
Bitcoin is now trading up 0.73% at $270.97.
Technical analysis of the 240-minute BTC-USD price chart suggests that bulls continue to have a tight grip over the situation. However, the recent price action also indicates that Bitcoin may consolidate for a brief period before making another move.
Bitcoin Chart Structure – As can be seen from the chart above, Bitcoin went on to touch a fresh 3-month high of $278.54 as the Greece crisis continued to worsen. But, a bout of profit booking forced the price down by $10 to $268, which has previously acted as a support level for the cryptocurrency.
Moving Average Convergence Divergence – Both MACD and Signal Line are reflecting strong positive levels. The MACD indicator value reads 4.4244 while the Signal Line value is 3.8655. The Histogram value has witnessed a considerable cut; from yesterday’s 1.6789 to the present 0.5589.
Momentum – The Momentum indicator is strongly in support of the buyers with a value of 10.8500.
Relative Strength Index – The underlying strength has eased a little, pulling the value from near-overbought to more stable levels. The latest 14-4h RSI value is 59.9859.
Bitcoin has had a great run during the Greece crisis, and calls of Bitcoin hitting $300 by the end of this week are getting louder. However, I would advise the market participants to book profits in their long positions as the price trades higher and not wait for $300. Traders can consider building light long positions at the current level for a target of $275 by placing a stop-loss below $267.