While attempts made by the bulls to pull Bitcoin higher are yielding no good results, the technical indicators are slowly and steadily reaching positive grounds. But having said that, I would still stand by my advice doled out in The Bears Have Not Gone Away that market participants should not resort to impulse buying and instead, remain short on the cryptocurrency.
Bitcoin is trading marginally higher at $224.99, and I believe that it is the current brief consolidation that is causing a jump in the values of the technical indicators rather than some real, positive sentiments. I am ready to be proved wrong!
Take a look at the technical considerations taken from the daily BTC-USD price chart below.
Bitcoin Chart Structure –As can be seen, Bitcoin’s closing prices have been limited to near $225. The cryptocurrency also retested the support lent by $220.
Moving Averages – The 30-day SMA is on the verge of crossing the 200-day SMA on the downside. The latest value of the 30-day SMA is $255.3837 while that of the latter is $250.5778.
Moving Average Convergence Divergence – The MACD has improved its efforts of staging a bullish crossover with the Signal Line, thereby pushing the Histogram closer to the 0-level. The MACD is now at -13.4984, much closer to the Signal Line value of -13.0393. The Histogram is now at -0.4591.
Momentum – A sharp jump was noticed in the Momentum reading, from -32.4700 to 0.1900.
Money Flow Index –The MFI has surged above the 40-mark and was last observed at 43.7474.
Relative Strength Index – The 14-day RSI was found out to be flat at 35.4710.
It is very hard to tell what will cause the next fall in Bitcoin, may be the bulls just lose their patience. But what can still be said with a higher level of confidence is that there is still no significant change in the chart structure and market participants should continue to remain bearish.