Bitcoin is trading flat as market looks to consolidate after a big fall. We discussed in our previous Bitcoin price analysis An Expected Decline that market participants should look to cover their short positions near $260. The cryptocurrency can be seen sustaining above this level.
Bitcoin is now trading at $264.91, down 0.05 percent from yesterday.
Technical analysis of the daily BTC-USD price chart once again reiterates that short covering may be the viable option at the current levels. 2 leading indicators are conveying that price may rise in the coming sessions.
Bitcoin Chart Structure – Bitcoin’s price action in the past 24 hours has been very tight, oscillating between $261-267.
Fibonacci Retracements – The 50% Fibonacci retracement of $268.50 is still the ceiling for the cryptocurrency.
Moving Average Convergence Divergence – The MACD and the Histogram are deep in the negative region with respective values of -2.6214 and -3.6661 respectively. Signal Line is, however, managing its positive stance – the latest value is 1.0447.
Momentum – The Momentum indicator erased some losses as market participants eased down on their short positions. The latest Momentum reading is -15.2800.
Money Flow Index – The MFI reading has dropped to 13.1522, which is indicative of extremely oversold conditions.
Relative Strength Index – The RSI has also stabilized with the price, the value now reads 39.1530.
Bitcoin may stage a little comeback in the future sessions as technical factors play out. Market participants should wait for better trading opportunities and exit for now.
If, in case, the Bitcoin price drops to $255, cover all your short positions (if you haven’t) and create long positions for a target of $265.
In case, the price advances to $275, exit the long positions and create fresh short positions.
Another event that may induce volatility in the Bitcoin market is the almost confirmed Greek deal with its creditors. Keep track of that as well!