Bitcoin price rose 2 percent to cross the $270-mark. I discussed in my previous Bitcoin price analysis titled Time to buy some that the cryptocurrency could stage a small comeback rally as technical factors played out.
Bitcoin price touched an intraday high of $271.50 and is now trading at $270.22.
Technical analysis of the daily BTC-USD price chart states that market participants should exit their long trades if the price were to rise further to $275-277.
Bitcoin Chart Structure – The support of the descending triangle will now act as the resistance for Bitcoin. The downward sloping trendline of the triangle will put an additional pressure on the bulls near $280.
Fibonacci Retracements – Bitcoin has risen above the 50% Fibonacci retracement of $268.50 but it is very unlikely that it also crosses the 61.8% Fibonacci retracement of $280.18.
Moving Average Convergence Divergence – The Signal Line is failing at arresting the decline in its value and is now at the verge of kissing 0. MACD stays in the negative region with Histogram. The latest values of MACD, Signal Line, and Histogram are -2.3112, 0.4144 and -2.7256 respectively.
Momentum – The Momentum indicator has risen slightly but is still very depressing at -12.1000.
Money Flow Index – Although off from severely oversold levels, the MFI is nervous at 22.0152.
Relative Strength Index – The RSI has advanced to 44.5651 as price rises.
Bitcoin is expected to trade within a range of $260-275 for some time, and therefore, market participants should near the end-levels as they provide good, low-risk, high-profit trading opportunities.
Short near $275-277 by placing a stop-loss above $280 for a target of $262 on the downside.
Create some long positions if the price falls to $260-262 for a target of $270-272 by placing a stop-loss just below $270.
I do not see another big price move for Bitcoin this week as market looks to settle down.