The latest price action in Bitcoin is sluggish at best. The cryptocurrency is hovering near $240 as it struggles to maintain its positive momentum on its way up. As can be remembered from the previous Bitcoin price technical analysis Know This Range, the target is $245, which also happens to be a strong resistance point.
Currently, the cryptocurrency is trading at $238.50.
With the price rise, the technical indicators have turned in favor of the buyers, however, I am not convinced by the latest data.
Fibonacci Retracements – During trading, Bitcoin has recently hit an intraday high of $240.56, which is closer to the 38.2% Fibonacci retracement level of $243.84. During the previous rebound, Bitcoin failed to cross this level.
Moving Average Convergence Divergence – The MACD is diverging fast from the Signal Line on the upside thereby leading to gains in the value of Histogram. The Histogram has a value of 1.6070, the Signal Line has a value of -1.9640 and the MACD has a value of -0.3570.
Momentum – The Momentum has leapt into the positive territory and has a value of 8.5000.
Money Flow Index – The MFI has advanced in accordance with the price appreciation. Its latest value is 60.7674.
Relative Strength Index – The RSI has climbed to 55.2871.
What can be easily said now is that there is no significant change in the chart structure as well as the technical indications apart from minor appreciation. These can be easily reversed if a bout of profit booking hits the market, therefore, participants are advised to not read too much into them.
But, market participants should definitely get out of their long positions if the target of $245 is achieved, and can even create light short positions near the resistance.
If Bitcoin breaks past $245, the next target will be $260, closer to the 50% Fibonacci retracement of $258.